To Tip or Not to Tip?
Kiplinger's Personal Finance|October 2023
Everyone from your barista to the car mechanic is asking for tips, and new technology adds to the pressure.
LAURA PETRECCA
To Tip or Not to Tip?

TIPPING has long been a tricky topic, but in rethe practice cent years, has taken on a whole new level of complexity.

Service providers are not only increasingly soliciting tips, but they're also spinning around touch-screen card readers with suggested percentages that can run as high as 30%. Adding to the struggle are bills with a "service charge" and a line for gratuity. And then there's the awkwardness of making a tipping decision while standing two feet from the person who just handed you your take-out pizza.

"It's a very complicated space," says Lizzie Post, co-author of Emily Post's Etiquette, The Centennial Edition, and the great-great-granddaughter of manners maven Emily Post.

So, how did the gracious act of adding a gratuity become so confounding? The global pandemic was a major impetus, as many consumers, while holed up in their homes, wanted to support small businesses and show appreciation for service workers.

"Covid increased people's willingness to tip even in circumstances where you weren't used to it," says Michael Lynn, a Cornell University professor of consumer behavior and marketing who has published more than 50 academic papers on service gratuities. "It also increased their willingness to tip larger amounts."

In addition, credit card readers that give suggestions such as 18%, 20% and 25% are more prevalent than ever-and unlike tip jars, they can cause extra gratitude angst because you must opt out. "With a tip jar, failure to tip is passive. It's a sin of omission," says Lynn. "Whereas failure to tip with the digital screen is more active. You have to say, 'No tip.' And we generally think sins of commission are worse than sins of omission."

Across the country, tip jars are proliferating, and digital prompts show no sign of abating. Still, you can take steps to feel good about the amount you tipif you tip at all.

Bu hikaye Kiplinger's Personal Finance dergisinin October 2023 sayısından alınmıştır.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.

Bu hikaye Kiplinger's Personal Finance dergisinin October 2023 sayısından alınmıştır.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.

KIPLINGER'S PERSONAL FINANCE DERGISINDEN DAHA FAZLA HIKAYETümünü görüntüle
Your Vacation Home Could Provide Tax-free Income
Kiplinger's Personal Finance

Your Vacation Home Could Provide Tax-free Income

If you plan to rent out your vacation home, it's important to understand how your proceeds will be taxed.

time-read
3 dak  |
May 2024
A SOLID YEAR FOR THE KIPLINGER 25
Kiplinger's Personal Finance

A SOLID YEAR FOR THE KIPLINGER 25

All but one of our favorite actively managed, no-load mutual funds gained ground as markets recovered.

time-read
10+ dak  |
May 2024
IT'S NOT YOUR IMAGINATION: YOUR CEREAL BOX IS SHRINKING
Kiplinger's Personal Finance

IT'S NOT YOUR IMAGINATION: YOUR CEREAL BOX IS SHRINKING

To avoid raising prices, some manufacturers are reducing the size of common grocery items. Here’s how to fight back.

time-read
2 dak  |
May 2024
SHOULD YOU WORRY ABOUT BEING LAID OFF? IT DEPENDS ON YOUR INDUSTRY
Kiplinger's Personal Finance

SHOULD YOU WORRY ABOUT BEING LAID OFF? IT DEPENDS ON YOUR INDUSTRY

Downsizing has hit certain sectors. But cutbacks may be slowing, and some companies are expanding.

time-read
4 dak  |
May 2024
How identity thieves are exploiting your trust
Kiplinger's Personal Finance

How identity thieves are exploiting your trust

Con artists themselves are disguising as well-known brands to steal your money and personal information.

time-read
3 dak  |
February 2024
CUT THE COST OF YOUR WIRELESS BILL
Kiplinger's Personal Finance

CUT THE COST OF YOUR WIRELESS BILL

AT&T, T-Mobile and Verizon dominate the market, but smaller outfits offer similar network coverage at lower prices.

time-read
10 dak  |
February 2024
MAKING HOME ENERGY MORE AFFORDABLE
Kiplinger's Personal Finance

MAKING HOME ENERGY MORE AFFORDABLE

Households in need can get energy-efficiency upgrades, help with utility bills and more from this nonprofit.

time-read
2 dak  |
February 2024
A HEAD START FOR SAVERS
Kiplinger's Personal Finance

A HEAD START FOR SAVERS

The Saver's Credit is designed to help low- and middleincome taxpayers contribute to a retirement account.

time-read
2 dak  |
February 2024
Say I Love You With a Money Date
Kiplinger's Personal Finance

Say I Love You With a Money Date

To nurture a lasting bond with your partner, meet regularly to talk about money.

time-read
2 dak  |
February 2024
Plan for Your Own Elder Care
Kiplinger's Personal Finance

Plan for Your Own Elder Care

AFTER I wrote a series of columns in 2022 about elder care planning for family members, I received a number of responses like this one: “What about married couples who have no children or whose family members don’t live nearby?” wrote one reader. “Or a single individual with no close relatives? How should these people plan for their own elder care?”

time-read
2 dak  |
February 2024