Affordable Ways to Participate in Tipping Culture

Tipping has been common in the United States for a long time. But over the past few years, expectations have risen. More and more businesses are asking for tips. Some consumers have complained about being asked to tip at grocery stores, airport stores, and even at self-checkout locations.

You may have noticed businesses asking for more tips. Some companies have tip screens that start at 20% or 25% and go up beyond that. If you want a smaller tip, you’ll have to enter it manually.

No one wants to spend a large portion of their paycheck on tips. But tipping culture isn’t going away. Here’s how to find the balance between tipping a reasonable amount without harming your personal finances.

Plan how much tip will be added to your bill

In situations where a tip is expected, try to estimate how much the tip will cost. You can then figure out the total cost of that service and see if it’s right for you.

Let’s say you’re planning a date night. You find a restaurant and find out that dinner for you and your spouse will cost approximately $100. If the sales tax is 8% where you live, that’s an extra $8. The standard guideline for tipping in restaurants is 15% to 20% of the pre-tax amount, which in this example is $15 to $20. In total, dinner will cost between $123 and $128.

If you’re planning on spending up to $100, you might get an unwelcome surprise. Instead, plan your total costs so there are no surprises. You can decide if that amount is right for you, and if not, you can choose a cheaper option.

Carry small bills with you to use as tips.

I still remember that awkward moment when I was on vacation helping a bellboy carry my luggage. It wasn’t very difficult, and $5 would have been a reasonable tip. I searched his wallet and found nothing less than $20 in it. At least it was good news for him.

So I always keep small bills in my wallet. More businesses than ever are accepting tips by credit card, but that’s still not always possible. Some places only have tip jars, and some service professionals (bellboys, valets, housekeeping, etc.) only accept tips in cash.

There are several ways to receive small bills. What I do is ask the grocery store cashier to calculate a larger amount. This is a convenient option because you can do it any time you go grocery shopping. Some ATMs give you the option to select the amount you want. You can also visit a bank branch and request specific bills, which is one of the advantages of in-person banking.

Don’t feel obligated to tip more than you want to.

Tipping is your decision, not the company’s. memory:

• You don’t have to leave a tip just because the business asks for it. Even if you don’t normally need to tip, the tip screen appears during payment, so there is no need to tip.
• The tip amount is up to you. The reason tip screens suggest high tip amounts is because many people choose to tip as much as possible. If you plan to tip less, stick to your plan.
• There is no need to tip if there is a service charge. This is my pet peeve. Some businesses charge a service fee but still require a tip. My rule is that I pay either the tip or the service charge. But you don’t pay for both.

When in doubt, look it up

It’s a good idea to think ahead about when to tip. But keeping track of everything can be difficult, and each culture is different. For example, in many Asian countries, tips are not expected and may even be considered rude.

Whenever you’re not sure whether or how much to tip, try searching online. You can find tip guidance for almost any situation. However, please know in advance. Doing this while paying for a service is a bit awkward. Use the information you find and your financial situation to determine a fair tip you can afford.

WARNING: The highest cash back card we’ve ever seen has a 0% introductory APR until 2025.

Using the wrong credit or debit card can result in serious costs. Our experts love this top pick, which features 0% introductory APR for 15 months, crazy cashback rates of up to 5%, and no annual fee, all of it.

In fact, this card is so good that our experts even use it personally. Click here to read the full review for free and apply in just 2 minutes.

Read reviews for free