Christmas is a financially difficult time for most families, but for Charles and Caroline and their girls, it is even more so as each tries to think of a way to gather enough money to buy presents for each other. Charles is in great need of some new clothes, Caroline desperately wants a lovely stove she sees in the mercantile and Carrie wants to get a special gift for the baby Jesus.
In order to earn money for the stove, Charles undertakes to repair some wagon wheels for a customer of the mercantile, while Mary helps out the local seamstress and makes something nice for her father. Meanwhile, Laura makes a secret deal with Mr. Olseon about buying the stove for her mother so several people are suffering a case of crossed wires when Caroline makes Charles exactly what Mary does and both Charles and Laura think they have purchased the stove for Caroline.
It is a real tear-jerker when Charles makes a fine saddle for Laura's pony and we see that, in order to pay for the stove, Laura has made arrangements to sell her beloved pet to Mr. Olseon for Nellie, who wants it badly, in exchange for the stove.
A beautiful episode, full of all the love, peace and Joy of Christmas.