Buzz
Recently, I’ve noticed a surge of jokes and memes about ‘guilt tipping’—the societal pressure to leave a tip for service workers. It’s somewhat absurd to be prompted to tip when using self-checkouts or paying for items at a gas station or convenience store (but who exactly are we tipping?). However, when it comes to those who actually provide a service, like baristas or fast-casual restaurant staff, some people seem upset at the mere suggestion of tipping—especially when asked to leave 20% or more.
Sure, 15% used to be the ‘standard,’ but even if you feel the service doesn’t justify it, it’s time to adjust. A 20% tip is simply part of the transaction when making certain purchases in 2024. Whether you’re irritated by the principle or genuinely concerned about the extra cost, the reality is: Tip requests shouldn’t be so overwhelming. I’ll break it down with some math to offer a clearer perspective.
The expense of tipping your barista
As reported by Northwestern Mutual, 53% of Gen Z and 52% of Millennials surveyed believe that routine purchases, such as a daily coffee, could affect their long-term financial stability. However, as I've pointed out before, small luxuries (like a latte or a piece of that infamous avocado toast) alone aren't going to be the deciding factor between financial security and a lifetime of debt. This also means that tips for those purchases aren't going to spell financial disaster for you.
Let’s consider buying a $5 coffee. A 20% tip on that would add $1. If you’re already able to buy the coffee, that extra dollar isn’t going to derail your budget. It’s just a small gesture that can brighten someone's day. The same logic applies to tipping your server at a restaurant, your Lyft driver, or in any other situation where tipping is an option.
Being a more mindful spender means recognizing where your money is going. If you can't afford to include a 20% tip in your budget, then you can’t afford the service. And if tipping offends your principles so much that you refuse on ideological grounds, it’s practically like wearing a shirt that says, "I've never had to work a service job!"
Who should you be tipping (and how much)?
From a personal finance standpoint, there’s no valid reason to skip 20% tips for services you've already planned for in your budget. But who are the people you should be tipping? Here's a quick refresher to clarify that and help you decide how much to tip.
When and how much to tip servers, baristas, and restaurant staff
Picking up from a restaurant: For pickup orders from diners or restaurants, a 10% tip is appropriate.
Buffet: Tip 10% based on the pre-tax total of your bill.
Delivery person: We all know to tip food delivery drivers, who often use their own cars. But should the tip be a set dollar amount or a percentage? Both: Consumer Reports advises tipping 20% of the total or $3-5, whichever is greater. And it’s best to tip in cash.
Supermarket bagger: Many grocery store baggers aren’t allowed to accept tips.
How much to tip for home-related services
Building supervisor: Consider a yearly holiday tip ranging from $75 to $175.
The cable guy: There's no need to tip, but offering a drink is a nice gesture.
Home service providers (e.g., electricians, plumbers, landscapers): No need to tip.
Exterminator: Tipping practices may vary by region, so it’s a good idea to check with the company beforehand to understand what's typical.
Home contractors: If the contractors go beyond what’s expected, feel free to tip 20%.
Furniture/appliance delivery person: A tip of $5-20 per person is standard, depending on the size and complexity of the delivery. (Just make sure this isn’t already included in the bill.)
Flower delivery person: Tip $2-5, or up to $10 if the plant is large or heavy. For deliveries to events like weddings, a little extra is appreciated.
How much to tip for car-related services
Gas station fill-up person: No need to tip if you're in the few states where pumping your own gas is prohibited. In the other 49 states, where you have the option to choose an attendant, tip $2-3 if you use one.
Mechanic: Tipping is not necessary.
Tow truck: $5 to $10 if they assist you when you're locked out; $3 to $5 for services like jump-starts or tire changes; $5 or more if a tow is involved.
Parking attendant/valet: Tip $1 to $2. If this person regularly assists you (e.g., at your work garage), consider tipping $1-2 per day.
How much to tip for travel-related services
Concierge: $5 to $10 for help with reservations.
Hotel housekeeping: Tip $2 to $5 per night. (Leave it in an envelope with clear labeling.)
Bellhop or airport skycap: $1 per bag, or more if the bags are heavy.
Rental car shuttle driver: Tip $1 or $2 per bag if they assist with luggage.
How much to tip for entertainment-related and miscellaneous services
Theater/arena usher: While it’s uncommon to tip ushers, if you do, a tip between $1 and $5 is appropriate.
Camp counselors: Tipping varies by camp. Some don’t allow it, but others may suggest an amount (e.g., $1 per day). Call the camp to confirm the practice.
Children’s party entertainers: Tip $15-$25, depending on the length and nature of the performance.
Dog walker: Consider a holiday tip at the end of the year, up to the equivalent of one week’s pay.
Tattoo artist: A 15% tip is the minimum, with 20% being the standard.
Hairdresser/colorist: Tip 20% of the total service cost—cash is preferred, as many salons do not allow tipping on a card.
If you're unsure about whether or how much to tip, it's always a good idea to inquire beforehand. For those working in service roles with limited pay, these small contributions can truly make a significant impact. Don't be stingy—tip your service workers. Being asked to do so shouldn’t upset you, and it can truly change the day for someone trying to make a living.
