Tipping has long been a fixture in American culture. While there is no law stating that you must tip, younger generations are beginning to view tipping as more of an obligation. According to Pew Research, 38% of Americans ages 18 to 29 view tipping as an obligation compared to just 24% of seniors over the age of 65.
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However, the idea of tipping has transformed since the COVID-19 pandemic. Today, it’s not uncommon to see tip requests from drive-throughs, vending machines, arcades and self-checkouts. The influx of tips has led to a backlash and sparked a discussion about when and how much to tip. Here is where some finance experts stand on the topic.
Restaurants are the classic example of when it’s a good idea to tip. In some cases, wait staff earn as little as $2 per hour, with tips making up the rest of their wages. When a waiter or waitress serves you food, fulfills your requests and offers an overall pleasant dining experience, you should give them a tip.
Dave Ramsey, a personal finance expert, host of “The Ramsey Show” and founder of Ramsey Solutions, has an article on his site that suggested keeping tips around 15% to 20% at sit-down restaurants, with a 25% tip going to those who offer exceptional service. Ramsey’s site noted that fast-food restaurants often don’t require a tip, as the employees usually don’t bring the food to your table and serve you. As a general rule of thumb, keep an eye out for how the employees are serving you and shaping your dining experience, and tip accordingly.
Food delivery is another area where many experts agree you should give a tip. If someone brings hot food from a restaurant all the way to your home, they deserve compensation for their efforts. Ramsey’s site suggested giving a tip of between 10% and 20% for good service and prompt delivery.
Recently, takeout options have also been asking for tips. Compared with delivery, this is a different situation. You are leaving the comfort of your own home, spending your time, gas and energy to go to the restaurant to pick up food. If you want to show some gratitude for those who prepared the food, you can leave a small tip. However, you shouldn’t feel obligated to do so.
It’s becoming more and more common for tip requests to appear on automated kiosks and self-checkouts. Like picking up takeout, you’re doing the work here of ringing up your items and paying for them. You shouldn’t feel compelled to leave any tips, as no one is serving you. LendingTree’s chief consumer finance analyst, Matt Schulz, called this practice “guilt tipping” in a CNBC article. He explained that if you feel anxious or stressed out when a tipping option appears on the screen, you don’t need to feel like a jerk for bypassing it and not leaving one when you don’t want to.