When the two wanderers end up at the Valiant Soldier Inn, Nell's grandfather sees a card game going on at a table nearby. Being a compulsive gambler, he goes over there and cuts into the game himself. Nell carries their traveling money, since she is the more responsible of the two of them, but her grandfather uses what authority he has as an adult to make her give him everything they have in her purse. Nell, being obedient, reluctantly complies; however, she is crafty enough to hide some money on her person, so she can arrange for the two of them to have a room for the evening.
Of course, Nell's grandfather loses their money as always. That night, Nell has a hard time sleeping because a servant told her robbers prowl the inn. And Nell does hear a man going about the room when she is in bed. However, the next morning, she realizes the man was her own grandfather, robbing her so he could get more gambling money.
This is an important illustration of Nell and her grandfather's relationship. Though the grandfather is the adult and should be looking out for Nell, he gambles constantly and acts in irresponsible ways, while Nell is forced to endure it because she is still just a child.