Della is crying because she is unable to afford a nice Christmas present for her husband, Jim. She has a salary of $20 and only $1.87 to spend on a gift.
Climax
Della sees the sign “Mne. Sofronie. Hair Goods of All Kinds" and asks Madame Sofronie if she would buy her hair. She agrees to buy it for $20. Della is happy that she can spend the money on a gift for Jim.
Falling Action
Della is searching stores in an attempt to find the perfect gift for Jim. She is happy to find a platinum chain that would be perfect for Jim's beloved watch. She bought the chain for $21.
Resolution
Della is scared that Jim will think she is ugly because she cut her hair off. She tries her best to make her hair look nice and begins making coffee and heating up a pan. When Jim arrives, Della tells him that she cut and sold her hair. Jim is surprised at the news. He then presents his gift, a set of combs, to Della. Della then gives Jim his chain. She asks him to take out his watch and try it on but he refuses to do so.
They sit down on the couch, and Jim tells Della that he sold his watch to buy her gift.
The text states how they cared for each other so much that they each sold their most important possessions to purchase accessories for the other's most important possession. They are compared to the magi who brought gold, frankincense, and myrrh to Jesus.