By Chris Taylor
NEW YORK (Reuters) – ‘Tis the season for giving, and more Americans are planning to give year-end holiday tips.
But figuring out who gets what can be tricky.
“In recent years, with inflation cutting into our purchasing power, it felt like we couldn’t give as much as we wanted,” says Bankrate senior industry analyst Ted Rossman. “This year, holiday tipping frequency is back up, and the amounts have recovered.”
For example: This year 57% of people are planning to tip housekeepers for the holidays, compared to 47% back in 2021, according to a Bankrate study. The same goes for their kids’ teachers (53% up from 41% over the same time frame), childcare providers (55% from 41%) and mail carriers (31% from 27%).
Of particular note: Younger generations are seemingly the most generous of all. When it comes to tipping trash collectors, for example, the frequency declines precipitously by generation: 36% of Gen Z, 33% of Millennials, 22% of Gen X, and only 16% of Baby Boomers, Bankrate says.
Just ask Monique Kelley, a millennial who is a communications expert and an associate professor at Boston University. Her tipping philosophy for the holidays: “You get extra,” says Kelley.
“Whether it is a cab driver, or a service provider I have known for years from the hair salon, I always tip extra around the holidays,” Kelley says. “Instead of 20%, I find myself tipping 30%-50%.”
To be sure, tipping can be a tricky social and financial situation. Who do you tip, and who do you not? And what if you just do not have the financial resources to properly honor all the service providers in your life?
The new Bankrate survey provides some clues: This year, the average year-end amount for housekeepers is $50. Meanwhile, childcare providers also receive $50, landscapers are given $30, teachers get $25, while mail carriers and trash collectors are tipped $20 each.
Here are a few tips on tipping from the experts.
MAKE YOUR OWN DECISIONS
When we do not know what to do, our typical reaction is to ask others what they are doing. That is not the right way to go, according to Diane Gottsman, national etiquette expert and owner of the Protocol School of Texas.
“Be careful who you ask, because they probably don’t know either,” says Gottsman, who has compiled her annual holiday tipping guidelines here.
After all, your friends’ financial circumstances and tipping attitudes are unique to them, and shouldn’t determine your own strategy.
MAKE ‘ABOVE AND BEYOND’ YOUR CRITERIA
Obviously, we cannot afford to tip every service provider in our lives. So do not be shy about making a list, Rossman says, and really focusing on the people who stood out.
“Who really went above and beyond for you this year?” he asks. “If you have a babysitter who is great with the kids, and is always willing to stay if you are running late – you want to say thank you, and you want to keep them happy, so use that as your guidepost.”
CONSIDER POOLING RESOURCES
There are a few advantages to getting together on a gift, such as for your kid’s classroom teacher. It saves 20 or 30 people from having to come up with ideas on their own. It also lets everyone know an appropriate amount and creates enough purchasing power to buy something very useful and meaningful.
“If everybody in the class gives $10 or $20, that can roll into a really nice gift card,” Rossman says.
THINK BEYOND CASH GIFTS
If you are constrained by the amount you can give, consider other types of gifts as well.
For instance, maybe you have a killer banana bread recipe, suggests Gottsman, a loaf of which demonstrates real time and thoughtfulness.
“Give what you can, and what you’re comfortable with,” she says. “But make it special with a handwritten note, about how much you appreciate them. That goes a long way.”
(Editing by Lauren Young and Lisa Shumaker)
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