Dave Ramsey and 2 More Experts Discuss Where They Draw the Line on Tipping
Written by
Peter Burns
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Molly Sullivan
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Tipping has long been a fixture in American culture. While there is no law stating that you must tip, younger generations are beginning to view tipping as more of an obligation. According to Pew Research, 38% of Americans ages 18 to 29 view tipping as an obligation compared to just 24% of seniors over the age of 65.
However, the idea of tipping has transformed since the COVID-19 pandemic. Today, it’s not uncommon to see tip requests from drive-throughs, vending machines, arcades and self-checkouts. The influx of tips has led to a backlash and sparked a discussion about when and how much to tip. Here is where some finance experts stand on the topic.
Restaurants
Restaurants are the classic example of when it’s a good idea to tip. In some cases, wait staff earn as little as $2 per hour, with tips making up the rest of their wages. When a waiter or waitress serves you food, fulfills your requests and offers an overall pleasant dining experience, you should give them a tip.
Dave Ramsey, a personal finance expert, host of “The Ramsey Show” and founder of Ramsey Solutions, has an article on his site that suggested keeping tips around 15% to 20% at sit-down restaurants, with a 25% tip going to those who offer exceptional service. Ramsey’s site noted that fast-food restaurants often don’t require a tip, as the employees usually don’t bring the food to your table and serve you. As a general rule of thumb, keep an eye out for how the employees are serving you and shaping your dining experience, and tip accordingly.
Food Delivery
Food delivery is another area where many experts agree you should give a tip. If someone brings hot food from a restaurant all the way to your home, they deserve compensation for their efforts. Ramsey’s site suggested giving a tip of between 10% and 20% for good service and prompt delivery.
Recently, takeout options have also been asking for tips. Compared with delivery, this is a different situation. You are leaving the comfort of your own home, spending your time, gas and energy to go to the restaurant to pick up food. If you want to show some gratitude for those who prepared the food, you can leave a small tip. However, you shouldn’t feel obligated to do so.
Self-Checkout and Kiosks
It’s becoming more and more common for tip requests to appear on automated kiosks and self-checkouts. Like picking up takeout, you’re doing the work here of ringing up your items and paying for them. You shouldn’t feel compelled to leave any tips, as no one is serving you. LendingTree’s chief consumer finance analyst, Matt Schulz, called this practice “guilt tipping” in a CNBC article. He explained that if you feel anxious or stressed out when a tipping option appears on the screen, you don’t need to feel like a jerk for bypassing it and not leaving one when you don’t want to.
Service Workers
Apart from the food and beverage industry, there are many other types of service workers that you may want to tip. This category can include ride-share drivers, massage therapists, hotel staff and child care providers. Usually, you should tip more for the more difficult and professional service. For example, a babysitter who took care of some chores while the kids slept or a barber who went the extra mile to give a great haircut should get an extra 15% to 20%. On the other hand, you might just give a few dollars to a bellhop who carries your bag on an elevator or a taxi driver who takes you for a 10-minute ride.
Retail Employees
If you make a purchase at a retail store, there’s a chance that the cashier will spin the card reader around or hand you an iPad with tipping options displayed. In this case, you don’t need to give a tip because these employees’ salaries don’t depend on them. If you believe they went above and beyond to help you find the right style of jeans or carry a TV to your car, you can tip accordingly.
In an interview, personal finance expert Angelica Prescod made it easy and said, “Tip on the service that you’re actually wanting to tip for.” She said you shouldn’t tip because you feel pressured. She also explained that just because a card reader starts at a 25% tip, it doesn’t mean it’s your starting point. Don’t be afraid to select “other” or “custom” and tip the amount you deem appropriate.
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