Do you plan to leave a $20 bill in the mailbox or send gift cards to school for your child’s teachers? If so, you’re among the many Americans planning to say thank you with tips for service providers like mail carriers and teachers this holiday season.
Bankrate’s 2024 Tipping Culture Survey revealed more than 1 in 3 Americans say tipping culture has gotten out of control. Even so, more U.S. adults say they plan to tip housekeepers, childcare providers, teachers and trash/recycling collectors this holiday season than since polling began in 2021.
When asked why they planned to tip, 4 in 5 tippers (80 percent) said they just want to say thank you.
Holiday tips are a nice way to show your appreciation for hardworking people who have helped you throughout the year.— Ted Rossman, Bankrate senior industry analyst
Key insights on holiday tipping 2024
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- Americans are tipping this holiday season. From housekeepers to mail carriers, holiday tips for service providers are on the rise — although the tip amounts are the same or slightly lower than in past years.
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- Most tippers want to say thank you. Others want to reward especially good service, be generous, keep up with tradition or get better service next year.
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- Younger generations are more likely to tip. And in 5 of the 6 provider categories, Gen Zers (ages 18-27) plan to give the highest (or tie for the highest) tip amount.
More Americans planning to tip certain service providers this year
Many Americans want to tip workers who regularly care for their homes or families. Among people who use each service, here’s how many plan to give a holiday gift or tip, among those who receive that service:
- Housekeeper: 57 percent
- Childcare provider: 55 percent
- Teacher: 53 percent
- Landscaper/gardener/snow remover: 41 percent
- Mail carrier: 31 percent
- Trash/recycling collector: 26 percent
Except for plans to tip a landscaper/gardener/snow remover — down slightly from last year — these plans for tipping are the highest Bankrate has seen since polling began in 2021.
Callie Fruit, a millennial, former educator and mother of two, says she gives holiday tips based on the value and frequency of the service. When it comes to mail carriers and trash collectors, Fruit is more likely to tip if it’s the same person visiting consistently.
“The only one I see regularly is our USPS mail carrier,” Fruit says. “She’ll interact with my kids, which I appreciate.”
Fruit also explains that when she was a teacher, she’d receive holiday “tips” in the form of gift cards, mugs and cards. Now, she budgets $100 total for gifts to her child’s teachers.
Most holiday tips are driven by gratitude, good service and generosity
When tippers were asked why they planned to give a holiday gift, tip or gratuity this year, the majority (80 percent) responded, “to say thank you.”
Nearly half of tippers (47 percent) said they planned to tip to reward especially good service. And 2 in 5 tippers (40 percent) said it’s to be generous.
Fewer than 1 in 5 tippers (17 percent) said they planned to tip because it’s expected or traditional. And just 15 percent said it’s to get better service next year.
Younger generations are better tippers across some services this holiday season
It’s not a surprise that higher-income households are more likely to give a tip this season. But notably, Gen Zers and millennials are better tippers than Gen Xers and baby boomers in a few categories.
“Traditionally, younger Americans have been viewed as lesser tippers than older adults, largely because they don’t tend to have as much money and also because they aren’t as ingratiated with those social norms,” says Ted Rossman, Bankrate senior industry analyst.
Even so, Gen Zers lead the way in the amounts they plan to tip. In five of the six provider categories, Gen Zers plan to give the highest — or tie for the highest — median tip. Only millennials plan to tip their landscapers/gardeners/snow removers more than Gen Zers.
In terms of tipping likelihood, 36 percent of Gen Zers and 33 percent of millennials plan to tip their trash/recycling collectors, compared with only 22 percent of Gen Xers and 16 percent of boomers.
Forty-eight percent of Gen Zers and 44 percent of millennials plan to tip their landscapers/gardeners/snow removers, versus 33 percent of Gen Xers and 32 percent of boomers.
And 56 percent of Gen Zers and 62 percent of millennials will tip their childcare providers, versus 52 percent of Gen Xers.
Despite more willingness to tip, the amounts of this season’s tips are the same or less than in previous years
While Americans might be more inclined to tip some service providers this year, they’re not tipping as much as in years past. Some service providers may get the same amount in tips as before, while others might get less.
This could be due to economic stressors. After all, half of Americans (50 percent) are carrying credit card debt, according to Bankrate’s Credit Card Debt Survey and 1 in 3 workers (34 percent) are living paycheck to paycheck, according to Bankrate’s Living Paycheck to Paycheck Survey.
Here are the median amounts tippers plan to give:
- Housekeeper: $50
- Childcare provider: $50
- Landscaper/gardener/snow remover: $30
- Teacher: $25
- Mail carrier: $20
- Trash/recycling collector: $20
3 ways to be a generous tipper this season
Many people are planning to spend less on holiday shopping or alter their travel plans to save money this year, according to Bankrate’s Early Holiday Shopping Survey and Holiday Travel Survey, respectively. Even if you’re in that situation, you can still be an appreciative tipper for the holidays if you plan and make room for it in your budget.
Here are three ideas for tipping that won’t leave you penniless in the new year.
Set aside tip money earlier in the year
Just like with holiday gifts for your family and friends, you can budget for holiday tips months in advance. Start by deciding early how much you’ll tip each person. A common practice is to tip the cost of one service visit — so if your housekeeper normally charges $100 a visit, you might tip that amount at the end of the year. For a non-transactional relationship like with your child’s teachers, you can predetermine the value of a gift card or other treat you want to give.
Then, include that amount in your annual budget. Teacher gifts can go in the back-to-school budget, and housekeeper or landscaper tips in the home improvement budget. That way, you’re not spending the tip money well before the year’s over.
The only thing you want to be in red are your holiday socks — not your budget.
Pool your resources
Another way to show appreciation during the holidays without footing the whole bill is to connect with other folks in the community who benefit from the service.
Parents can give a shared gift to their kids’ teacher, and neighbors can pool tips for the mail carrier or delivery driver.
“If you can’t afford to tip everyone, consider who went above and beyond to make your life easier,” Rossman suggests. “Pooling resources with community members — such as a class gift for your kids’ teachers — can be a good way to broaden the impact and limit the awkwardness of how much each individual family contributed.”
Consider alternatives to cash tips
Sometimes, handing over cash as a tip feels tacky. And the monetary amount you’re willing or able to give may have more value as a thoughtful gift. If you want to find a more heartfelt way to tip, consider gift cards, baked goods or letters. For instance, Fruit offers the idea of an appreciation basket for your mail carrier that holds snacks, drinks and a thank you note.
How and how much you choose to tip this season, the people who help keep our communities, schools and homes in great shape are worth appreciating.
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