Gift giving is at the heart of the story. O. Henry wrote “The Gift of the Magi” as a Christmas story, and the title references the first gifts given in the Christmas tradition. The Magi were three kings who traveled to see Jesus shortly after his birth. The kings brought priceless gifts with them: gold, frankincense, and myrrh. O. Henry juxtaposes the Magi’s gifts with the gifts that Della and Jim give each other for Christmas. Even though they cannot afford to buy each other nice things, they make extraordinary sacrifices to do so. The weight of the sacrifice highlights their love for each other and adds value to the gifts they give. At the heart of the story, however, is a sense of irony. The gifts they buy each other (a hair comb and a watch chain) are useless because they each sold their most valued possession.

From the beginning of the story, O. Henry highlights Jim and Della’s poverty and isolation. With the descriptions of their small apartment and tight budget, he emphasizes that there isn’t any money left to buy Christmas presents for each other, writing, “One dollar and eighty-seven cents. That was all.