While Della was in the kitchen with Jim she thought oh i still have to get you something for christmas. But she only has a few cents so she thought and thought when she came up with an idea.
As della gets her hair cut off she realizes she does that for Jims christmas gift. She gets it all done goes home right as jim gets home.
They both got home as she swiched gifts and he sees what she has done to her hair to get the chain for his watch. But he got rid of his watch for her hair combs. And she got rid of her hair for his watch.