While everyone is looking for ways to keep more cash in their wallets these days, nobody wants to be stingy when it comes to tipping. However, tipping has been a quick-moving cultural target over the last few years.
The rise of prompts on apps such as DoorDash, at point-of-sale terminals, and on receipts has created multiple sources of pressure when it comes to tipping. Anyone feeling lost about when to tip and how much is not alone.
Here are just a few of the changes that have occurred in the last few years when it comes to tipping.
If you’re over 50, take advantage of massive discounts and financial resources
Over 50? Join AARP today — because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.
How to become a member today:
- Go here, select your free gift, and click “Join Today”
- Create your account (important!) by answering a few simple questions
- Start enjoying your discounts and perks!
Important: Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $12 per year with auto-renewal.
Tipping is expected in more places
We are used to seeing an unassuming tip jar at smoothie joints and coffee shops. But tipping used to be a bonus, never an expectation unless you were at a sit-down restaurant with servers.
These days, everyone expects a tip — from your Uber driver to your hairdresser. A Pew Research 2023 survey found that 72% of Americans said tipping was expected in more places than it was five years previously.
It’s harder to know when you are supposed to tip
There is not a firm consensus on when you are supposed to tip. According to Pew, most people always tip at restaurants (81%), but for services like a taxi ride or getting a drink at the bar, expectations are mixed.
Around 43% of people always tip their taxi or rideshare driver and 53% tip bartenders. However, only 7% always tip at fast-casual restaurants.
Suggested tipping amounts are making people angry
Giving a tip feels less authentic when a register or receipt prompts you to give a specific amount. In fact, 40% of people oppose suggested tipping amounts.
Opposition is heavier from older adults, as 47% of those 65 and up oppose or strongly oppose a suggested tip amount. Younger folks ages 18-29 are more divided, with just 33% opposed. In fact, 31% in this age group actually favor tip suggestions.
Resolve $10,000 or more of your debt
Credit card debt is suffocating. It constantly weighs on your mind and controls every choice you make. You can end up emotionally and even physically drained from it. And even though you make regular payments, it feels like you can never make any progress because of the interest.
National Debt Relief could help you resolve your credit card debt with an affordable plan that works for you. Just tell them your situation, then find out your debt relief options.1
How to get National Debt Relief to help you resolve your debt: Sign up for a free debt assessment here. (Do not skip this step!) By signing up for a free assessment, National Debt Relief can assist you in settling your debt, but only if you schedule the assessment.
Automatic tipping charges make people even angrier
When automatic tipping charges show up on the bill, people aren’t happy about it. According to Pew Research, 72% of people oppose businesses including an automatic service charge or tip on the bill.
This shouldn’t come as a surprise, as a vast majority of people (95%) state that the quality of the service is a factor in how much they tip. An automatic gratuity eliminates the customer’s ability to reward stellar service or to punish subpar work.
Tipping is increasingly seen as an obligation rather than a choice
Older generations are more likely to see tipping as optional, whereas younger folks see it more as an obligation — a clear indicator that the perception of tipping has changed over the years.
For example, 29% of adults 65 and older state that tipping is a choice. That compares to 15% of adults aged 18-29 who hold the same view.
Around 24% of the 65 and older crowd see tipping as an obligation, but 38% of those 18-29 see it this way.
Trending Stories
It’s unclear how much to tip
It’s often hard to know how much of a tip is socially appropriate. In the 1920s, a 10% tip was expected for a meal in a first-class hotel. In current etiquette and personal finance publications, you will see rates of anywhere from 15% to 25% for a meal at a sit-down restaurant.
According to Pew Research, 15% is the most common rate for a restaurant tip (37% of survey respondents), but tipping rates were all over the board with the majority (71% of respondents) falling between a 15% and 20% tip.
There is social pressure in tipping situations
While it’s not as strong of a factor as the quality of the service, social pressure is a strong factor in tipping.
In the survey, 23% said social pressure to tip is a major factor in both whether they give a tip and how much, and 30% stated it was a minor factor.
Bottom line
Navigating the shifting landscape of tipping can be a challenge, but understanding the latest trends can help you make informed decisions on whether to tip.
As tipping becomes more prevalent in various service-based businesses, remember to budget for the tip before you buy so you don’t end up overspending. By doing so, you can get ahead financially while still showing appreciation for great service.
Lucrative, Flat-Rate Cash Rewards
FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.
Wells Fargo Active Cash® Card
Current Offer
$200 cash rewards bonus after spending $500 in purchases in the first 3 months
Annual Fee
$0
Rewards Rate
Earn unlimited 2% cash rewards on purchases
Benefits
- Low spend threshold for its welcome offer — $200 cash rewards bonus after spending $500 in purchases in the first 3 months
- Cell phone protection benefit (subject to a $25 deductible)
- Can redeem rewards at an ATM for literal cash
Drawbacks
- Foreign transaction fee of 3%
- No bonus categories
- Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
- Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 19.49%, 24.49%, or 29.49% Variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don’t expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
Subscribe Today
Want extra-cash moves to come right to you?
Stop browsing endlessly. Get proven ways to earn pocket money, help cover rent, and crush your debt — sent to your inbox daily.