When the holiday season approaches, questions regarding both the amount and the appropriateness of holiday gratuities seem to arise at every turn.
In addition to seemingly endless gift lists to satisfy, the holiday season presents many with the perplexing issue regarding service tipping. A popular consumer magazine has recently provided guidelines that may aid in simplifying the question of who to tip, how much to tip and when holiday gratuities are appropriate.
Consumer Reports magazine states in the December 2007 issue that gratuities, in general, rose by approximately $5.00 over the previous holiday season.
Average Holiday Tip Amounts
The table below reflects a summary of the average tips in Consumer Reports' survey of 1,800 people:
Mail carrier or newspaper delivery - $15.00 - $20.00
Trash collector - $20.00
School bus driver - $15.00
In general, Consumer Reports found that the experts they surveyed recommended a one-week service fee match for the total amount of the tip.
Five Factors to Utilize in Calculating Holiday Tip Amounts
Service quality and schedule – Do you see the provider on a weekly basis (as you would a lawncare crew) or is the service only every six weeks and varying? Is your child’s teacher an all-time favorite? Does your hairdresser suggest new styles and take extra time with you? Does your childcare provider take the time to relate amusing happenings with your child? It's often the small, thoughtful gestures throughout the year that urge us to remember providers with extra appreciation during the holidays.
Depth of relationship – Consider your relationship with the provider. Do you look forward to seeing them? Do they add a smile to your day? Do they increase your comfort level? Are they irreplaceable? Do you relate personal stories to them? If you are aware of their favorite items or have spoken about favorite beverages, teams or hobbies; keep these in mind for more personalized holiday gifts.
Area norms - If you are new to the area or region, ask local residents what the appropriate amounts are. Tip amounts will vary greatly between rural and city areas. Take the cost of living as well as current economic conditions into account when gauging a proper gratuity amount.
Length of working relationship - If you encounter this provider on a daily basis, a larger tip would be appropriate. A longer relationship may prompt a more personal gift than a standard gratuity. If the relationship is newly forming, the tip that you provide could lay the foundation for excellent service in the coming year.
Establishment style– Consider the type of establishment, is it extremely formal or laid back and casual? Ask other clients what an appropriate tipping range would be for the establishment.
Holiday Tipping on a Budget
In the current economic conditions it is wise to not over tip. Consider your budget carefully. In lieu of some gratuities, consider other methods of showing your appreciation:
Take the time to write a genuine thank you note - This is especially welcomed from children.
Create a homemade gift - In the Consumer Reports survey, an interesting regional difference was noted; the survey revealed that those in Southern US regions were more likely to cover gratuities with homemade gifts than those in the Northern US regions. Often the time taken to create the gift is a cherished gesture.
Pool your tips - Consider a collection among groups of clients (bus riders, classroom students, fitness class) to present the provider with a larger amount in a monetary tip, gift card or larger gift.
Such gestures generate a spirit of true holiday cheer.
The only gift is a portion of thyself. - Ralph Waldo Emerson
Sources: Consumer Reports Magazine, December 2007, Emily Post
The copyright of the article Holiday Tipping Guide in Personal Budgeting/Finance is owned by Karla Reed. Permission to republish Holiday Tipping Guide must be granted by the author in writing.