Jim and Della were this young married couple in a small apartment . They didnt have alot of money and they wanted to buy each other gifts for each other for christmas.
As she was looking for a present she saw a sign infront of a wig store . She read it and was so happy that she did because, it was a way that she can get more money for the present for Jim . She was going to cut her hair off for money she went and the lady gave her $20.
They give each other their presents , then thats when they find out she cut her hair and he sold his pocket watch .
Jim says thats ereything is going to be ok and to just put the gifts away and eat .
Although the young couple had messed up they had learn to give the gift of love .
It is situational irony , because they buy each other presents with out knowing the other person doesn't have that any more .