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Old man at some docks (can't remember if in city or down near jellyfish) needs an item for chair, so you give him a tablet or something. He gives you a fish in return.

I might mis-remember but I think that you can upgrade your money bag just by playing and checking the shop occasionally.

I am also stuck here, so also looking for advice.

You can buy new spells if you have the correct 2 stones, if I remember correctly.
The new spells can be bought from elves.

While in combat, you can see what drops the location has. Most are [infinite sign] x something, and then sometimes they have 1 x ? <- these are the good things you haven't yet discovered in the location. So you can only get a few good items from a single location, and they are always guaranteed to be good. If you don't have outfit items, go to each location and see which ones you haven't cleared properly yet.

How can I get past the Glacial Grotto entrance?