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Tipping people who provide services — hairstylists, nail techs, movers, bartenders — is a common practice. It’s also something that brings out a lot of strong feelings.
Customers expected to leave the money often balk because they don’t like the idea that the extra payment is seemingly required. They argue that the expectation makes it almost meaningless as a token for a job well done. On the flip side, some service providers — especially restaurant waitstaff — depend on those tips to make a living wage.
There are not many financial topics that elicit such strong feelings as the idea of tipping. If you need proof, ask your Facebook friends their opinions on tipping. Expect lots of responses and maybe even a heated discussion.
Besides wondering why and if we have to tip, we also want to know how much to leave for all the people who provide different services. The Penny Hoarder’s ultimate guide to tipping is here to help.
Why Is Tipping a Thing in the US?
Leaving tips in the United States has become standard and ubiquitous. We picked up tipping etiquette from European royalty in the 1800s, even though Europeans generally stopped leaving tips.
However it has become part of the system here, especially in the service industry. Restaurants and bars can charge less for their food and drink because they don’t have to pay service workers that much (except in a handful of states).
Tipping customs vary from place to place. Our tipping guidelines will help you know the standard tip amount for service, and how to calculate extra to thank someone for excellent service.
Understanding Tipping Etiquette
Tipping changed in the early days of the pandemic. As restaurants and other services scrambled to figure out how to survive, people tipped generously to try to help the businesses and workers make it through. Overall, expect to tip 15 to 20% for decent to good service. A 25% tip works for outstanding service. This has gone up a little over…
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