Who is narrating this story, and how old is he when these events take place? What is his relationship to the old woman he calls "my friend"?

Buddy is narrating the story, although that is not his real name. We never find that out. His friend calls him Buddy because she used to have a best friend with that same name, but he died in the 1880's.

Buddy is seven years old during the time of this memory.

Buddy and his "friend" are actually distance cousins and they live together with other family members who we do not meet in the story. His friend is in her sixties. Despite their age difference, Buddy tells us that they are each others' best friends. The story recounts a Christmas they spend together, as they have many before, preparing for the holiday in their own special ways. They spend ALL of their time together and are obviously very close. They are friends and family.