HerMoney Classic: Holiday Tipping 101
HerMoney with Jean Chatzky
Deep Dive
Why should tipping feel good rather than guilt-driven?
Tipping is a form of employment where customers subsidize workers' incomes for personalized services. It should feel good because you're directly contributing to someone's livelihood.
How does inflation affect holiday tipping?
Inflation may justify increasing tips, especially for services like hotel housekeeping where tipping norms haven't changed in decades. For restaurants, consider raising your tipping range from 15-20% to 20-25%.
What is Barbara Sloan's philosophy on tipping?
Tipping should feel good and be reserved for personalized services where workers directly enhance the experience. It's a way to participate in someone's livelihood and should not feel like an obligation.
How do service workers manage their finances differently?
Service workers, unlike salaried employees, have fluctuating income and expenses. They must approach money management like a business, tracking income and recognizing seasonal patterns to budget effectively.
What are some common tipping norms that haven't changed in decades?
Tipping norms like $2-5 per night for hotel housekeeping have remained unchanged for decades, even as the cost of goods and services has increased due to inflation.
How does the mode of tipping (cash vs. credit) affect service workers?
The impact of cash versus credit tips varies by establishment. Some prefer credit cards for fair distribution, while others prefer cash for easier tip-outs to other staff like busboys or barbacks.
What advice does Barbara Sloan give for those who can't afford to tip during the holidays?
If finances are tight, reduce the number of luxury services you use rather than tipping less. Many services are luxury-based, and not tipping can force workers to essentially work for free.
Why is tipping important for service workers beyond their base pay?
Tipping is crucial because many service workers rely on tips to supplement their income, especially in industries where base pay is low or nonexistent. It's a significant part of their livelihood.
What is the range of tips for hotel housekeepers during the holidays?
The typical range for tipping hotel housekeepers is $2-5 per night, though this hasn't changed in decades despite rising costs, making it a good time to increase tips.
How does Barbara Sloan suggest showing appreciation if you can't afford to tip?
If unable to tip, consider reducing the number of luxury services you use, such as fewer deliveries or dining out less. Focus on affordable alternatives like potlucks or picnics.
- Inflation complicates holiday tipping.
- Choosing between cash, gift cards, or Venmo is a challenge.
- Tips should be thoughtful, intentional, and effective.
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