Additional Coverage:
- You’re Probably Tipping All Wrong – Here’s What Experts Recommend (financebuzz.com)
Tipping has long been a part of dining out and salon visits, but lately, it seems to have expanded into nearly every transaction. A recent Bankrate survey reveals that 63% of Americans harbor at least one negative opinion about tipping culture, and many are uncertain about when and how much to tip.
Cody Schuiteboer, president and CEO of Best Interest Financial, highlights a common dilemma: “Am I paying for something tangible, or just trying to ease guilt because a screen prompted me?” He estimates that consumers might be spending up to $150 a year on unnecessary tips.
If you find tipping culture confusing, here’s a rundown of expert advice to help you navigate the evolving landscape.
1. Always Tip at Restaurants
Tipping at restaurants remains the norm and is generally expected. Schuiteboer advises budgeting for tips when dining out, as restaurant staff often depend on gratuities for their income.
Leaving a fair tip for good service is a simple way to acknowledge their work.
2. Consider Tipping at Coffee Shops
Coffee shops can be tricky. While tipping for a basic drip coffee isn’t necessary, tipping for specialty drinks or when a barista knows your order is encouraged.
Melanie Musson, a finance expert, suggests tipping about $1 per drink, especially at smaller or local shops.
3. Tip Auto Service Workers Only When They Go Above and Beyond
When picking up your car from routine maintenance like an oil change, tipping isn’t typically required since labor costs are included in the bill. However, if a mechanic provides exceptional service-such as fitting you into a busy schedule or roadside assistance-a $10-$20 tip is a kind gesture.
4. Don’t Tip on Retail Purchases
Retail transactions, including items like movie tickets or magazines bought at airport newsstands, do not warrant tips, even if prompted. Schuiteboer calls such tip prompts “tip creep,” a push by merchants to increase gratuities where they aren’t customary.
5. Don’t Feel Pressured by Inflated Tip Percentages
Have you noticed tip screens offering 20%, 22%, and 25% but skipping lower amounts like 10% or 15%? This is a merchant decision, not a societal rule.
Schuiteboer emphasizes that these higher presets are not moral tests and you should tip what feels right for you.
6. Avoid Double Tipping
Some restaurants automatically include gratuity for large parties. Be sure to check your bill before adding an additional tip to avoid paying twice.
7. Don’t Tip Fee-Based Professionals
Professionals such as lawyers, accountants, and doctors typically work for a set fee and tipping them is generally inappropriate. If you want to show appreciation, a thoughtful note or positive review is preferable.
Teachers may receive cash gifts during holidays as a token of thanks, but this is distinct from tipping.
8. Exceptions for Tradespeople
Plumbers and other tradespeople can be tipped, though it’s not expected. Offering $10 to $20 to a crew that handles emergency or difficult work is a nice way to express gratitude.
9. When in Doubt, Tip a Little
If you encounter situations where tipping is optional or unclear-like after receiving a small complimentary item or at a bar-lean toward tipping a few dollars. It’s a small gesture that employees appreciate and can brighten their day.
Looking Ahead
Starting in 2026, under the One Big Beautiful Bill Act, tips will no longer be subject to tax, potentially encouraging more people to pursue tipped work. This change won’t increase consumer costs but could improve earnings for service workers.
Smart Money Tips for Everyone
No matter your financial situation, there are ways to improve your economic outlook:
- Increase Your Income: Consider side hustles or methods to keep more money in your pocket without quitting your day job.
- Grow Your Wealth: Take advantage of compound interest and create a financial plan-professional guidance can be invaluable.
- Seize Opportunities: Maximize discounts and deals, especially as a senior, and ensure you’re not overpaying for essentials like car insurance.
By understanding tipping etiquette and managing your finances wisely, you can navigate these everyday challenges with confidence and ease.
Read More About This Story:
- You’re Probably Tipping All Wrong – Here’s What Experts Recommend (financebuzz.com)