This holiday season, many people are leaving tips to their instructors, housekeepers, and babysitters, but they are frequently the same as they were three years ago.
According to a Bankrate survey published this month, despite inflation reducing the purchasing power of gratuities by $5.81 since December 2021, housekeepers and child care providers are expected to receive median tips of $50 each, the same amount as in the previous three years.
But according to Ted Rossman, a senior industry analyst at Bankrate, the holiday spirit of giving is still alive, particularly when it comes to those we routinely meet and engage with: The consumer finance company examined six service-sector professions this year, and in five of them, year-end tipping intentions increased.
According to Rossman, tipping has generally decreased, so in a larger sense, it’s not a bad thing that [scheduled] holiday tips remain essentially unchanged from the previous few years.
The results coincide with a year-end shopping season that is driven by budget-conscious shoppers who are eager to locate deals and cautious about going beyond. The annual rate of inflation, which was somewhat higher than the Federal Reserve’s 2% target, was 2.7%. Additionally, many households are still struggling due to rising grocery prices and other regular expenses, even if discounts have been competitive and some seasonal items are becoming more reasonable.
Just six months ago, a Bankrate poll revealed that customers were decreasing the frequency of tips they provide to drivers, waitresses, and hair stylists. Since 2021, when the economy was recovering from the epidemic and service worker appreciation was at an all-time high, the percentage of respondents who said they always gave gratuities has decreased by 8 percentage points for each of those roles. According to more recent data, gratuities at sit-down restaurants have been comparatively low lately.
Therefore, it may not come as a surprise that Bankrate predicts that teachers and mail carriers will receive gratuities of $25 and $20, respectively, this year—the same amounts as during the previous holiday season. The average gratuity for landscapers, gardeners, and snow removers is $30, which is $7 less than it was a year ago.
Bankrate discovered that many employees may benefit from receiving a few extra envelopes. 57% of consumers are expected to tip their housekeepers, which is a 3 percentage point increase from the previous year and a 10 percentage point increase since 2021, the year with the largest post-pandemic increase. The percentage of people who want to tip child care providers has increased to 55% from 51% the previous year and 41% in 2021.
Surprisingly, young individuals are the most giving tippers during the holidays.
Ted Rossman, Bankrate’s Senior Industry Analyst
However, it seems that many households are unable or unwilling to provide gratuities. According to a recent Wells Fargo survey, only 50% of respondents want to give gifts or advice during the holidays. Young adults are more likely to have this trait. 62% of those aged 18 to 34 plan to tip, which is significantly higher than the 43% of people aged 55 and more, according to bank researchers.
Bankrate likewise found more generous intentions among younger people, even though they typically have been viewed as worse tippers than older adults, Rossman said in a release of the findings. Gen Zers and millennials continue to tip less at restaurants and many other establishments throughout the year. Surprisingly, however, young folks are the most giving tippers during the holidays.
Whatever your age or budget, experts offer a few tips for tipping this season.
Gifts, money, or a mix of the two are frequently acceptable, according to etiquette experts at the Emily Post Institute. When it comes to tipping people who work with kids,they recommendoffering nannies up to one week s pay and babysitters up to the total they d earn in a typical session. It is said that day care providers can receive tips ranging from $25 to $70, possibly in addition to a modest gift from your child.
Personal finance experts at Fidelitysuggest pooling resourcesfor a class gift or tip as a way to thank teachers collectively: Instead of getting 20 World s Best Teacher coffee mugs, for instance, your child s teacher could get one large gift, such as a gift card to a restaurant or retailer.
Some service workers are constrained by their employers from accepting gifts of certain amounts or anything at all. That s true for many nursing home staffers, home health aides and government workers like garbage collectors or mail carriers, so Emily Post experts say it s always smart to check company or agency policies first.
And if you can t afford to tip, inexpensive personal gestures are always better than nothing. A thoughtful handwritten card can go a long way and a brief personal note should always accompany any money or gift you re offering anyway, experts say. A batch of cookies or a homemade craft can also let you show your appreciation on a budget.
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