The story opens on Ebenezer Scrooge, a London moneylender so tight-fisted and cold that he carries his own low temperature about with him. On Christmas Eve he rebuffs his cheerful nephew's invitation to dinner, refuses two gentlemen collecting for the poor with a remark about decreasing the surplus population, and grudges his clerk Bob Cratchit even a warm fire. To Scrooge, Christmas is humbug and other people's affairs are no business of his.
That night he is visited by the ghost of his late partner, Jacob Marley, who drags a heavy chain forged in life out of greed and indifference. Marley warns that he wanders in torment because he never looked beyond his money-changing hole, and that Scrooge wears a still greater chain unseen. He tells Scrooge that three Spirits will come, offering the only chance to escape his fate.
The Ghost of Christmas Past takes Scrooge back through his own life: the lonely schoolboy, the joyful old employer Fezziwig, and the sweetheart who left him because a golden idol had displaced her in his heart. These scenes show how, step by step, fear of want and love of gain narrowed a once feeling man into a miser, and they reopen griefs he had long shut away.
The Ghost of Christmas Present reveals the warmth that surrounds Scrooge unseen: the modest, loving Christmas of the Cratchit family, whose frail son Tiny Tim will die unless things change, and the merry gathering at his nephew's house. From beneath the Spirit's robe emerge two starved children, Ignorance and Want, a rebuke to a world, and a man, that looks away from such need.
The last Spirit, the Ghost of Christmas Yet to Come, shows a future in which a man has died unmourned, his goods picked over and his name spoken with contempt, while the Cratchits grieve at an empty chair. When Scrooge reads his own name on the gravestone, he breaks down and pleads to change. He wakes on Christmas morning transformed, sends a great turkey to the Cratchits, raises Bob's wages, becomes a second father to Tiny Tim, who does not die, and keeps Christmas in his heart all the year.