Jiraiya and Naruto arrive in the town where the festival is taking place. The boy is very happy about this, so he pulls out his savings, preparing to spend it. However, Jiraiya decides to keep his money and, after giving Naruto just a little, confiscates his wallet, telling the boy about the three sins of shinobi, namely alcohol, women and money. Naruto tries to prove that nothing on the list is a threat to him, but the sannin is adamant. They part ways for a time – Jiraiya goes to gather information on Tsunade, while Naruto has fun at the party.
After a while a well-rested Naruto decides to find his mentor and treat him to a meal. He buys two fried calamari and hears the sannin’s voice coming from the place. Once inside, he observes Jiraiya breaking all three shinobi bans – groggy, in the arms of women, and, most offensive to the boy, having spent all his savings. In a rage, Naruto accidentally releases the squid from his hands and it lands directly on the suit of one of the entrants, leaving a greasy stain on it. The men start threatening Naruto, but Jiraiya intervenes on his ward’s behalf, telling Naruto to keep a close eye on what’s going on. Jiraiya uses a previously unseen technique and tosses the strangers into a market stall on the other side of the street. After compensating the vendor, he buys his merchandise – water balloons – as he has an idea on how to better train Naruto. Once out of town, they begin training. Sannin hands the boy one of the balls and explains what he needs to do to learn the new technique.