What does it mean to say grace is a gift?

The statement that grace is a gift emphasizes the unmerited favor of God towards sinners. Ephesians 2:8-9 clarifies that we are saved by grace through faith, and that not of ourselves: it is the gift of God, not of works, lest any man should boast. This means that grace is not something that can be earned through good works or merit; it is given freely by God to those He has chosen. Believers should recognize that any ability they have to respond in faith is itself a result of God's gracious work within them, underscoring the sovereign grace perspective that all aspects of salvation are initiated and completed by God.