The gift of the Magi
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Della is crying after finding out that she doesn't have enough money to buy Jim a gift.
It is revealed to us that Jim also got Della a present and ironically he used his watch to buy a present for Della's hair.
Della figures out a way to get Jim something but she has to sell her hair for it. Now she is buying a watch chain for Jim.
Jim gets home and sees that Della cut her hair. Della also gives Jim the present she got for him using her hair. The present is the watch.
Della and Jim put their presents aside and realize that they both sold the things that they love for each other.