How Much Should You Tip?
October 12th, 2007 Posted in Good to Know, Money
Tipping is tricky because a lot us don’t always know when to tip, who to tip or how much to tip. We’ll help you make sense out of this topsy turvy world and today we’re going to tackle tipping.For more information, check out The Simple Dollar and Personal Finance Advice.
Full Transcript
Hi, I’m Nikki Key and you’re watching the Daily Idea.
When you got your last mortgage statement was there a little smiley face on the bill? What about the last time you were at the DMV? Did the surly woman behind the counter smile and say, “Come back and see us”? How about the last time you went to the movies with a group of friends? Did you pay an extra eighteen percent because you were with a group of six?
We associate all of those things with the service industry and they all relate to tipping. Tipping is tricky because a lot us don’t always know when to tip, who to tip or how much to tip. The guy who reads your water meter provides a service, but you don’t tip him and you don’t send in a little extra for him on your monthly bill. But you do tip a bartender for giving you a drink you’re already paying for. Strange.
You’ve come to rely on the crack staff at the Daily Idea to make sense out of this topsy turvy world and today we’re going to tackle tipping.
Tipping started in England. Americans can add it to the running list of reasons to hate our former overlords across the pond. As the story goes, “tips” of gold were thrown by feudal lords on horses to peasants in the streets as payment for safe passage. Eventually, to “tip” was used as medieval street talk for “hand it over.”
Most Americans learn the ropes for tipping in restaurants. According to what I found on the internet two minutes before the show, the fifteen percent tipping rule started sometime in the seventies. And, for the most part, it remains the standard for what you should leave your waiter today. At lunch, however, it’s fair to leave fifteen percent or two bucks, whichever is more.
The fact is, servers expect a tip. And rightfully so. Their employers legally pay them less than minimum wage – usually two to three dollars an hour – since they receive tips. You, on the other hand, are not legally required to leave a tip. You have the right to expect adequate, if unspectacular, service and when you get it, you should leave a tip of at least fifteen percent. If you choose not to, hey, that’s your call, but you do it at your own risk and I think you know what I mean.
Restaurant wait staffers aren’t the only service providers that depend on us for tips. Take Cab drivers, for instance. Like servers, fifteen percent of your total fare is an appropriate tip. The same goes for your hair dresser, stylist, barber, or your weird aunt who still cuts your hair in her basement.
What about delivery people? A good rule of thumb for food delivery people is a dollar or two for a short distance, and two to three dollars for longer distances. If you order room service, the fifteen percent rule applies.
If we’re talking furniture or appliance delivery people, that’s a little different. If you paid a thousand dollars for a sofa, you don’t expect to pay out fifteen percent more to the guys who bring it to your house. In this kind of situation, usually five to ten bucks per deliveryman is just the right amount, although a twenty per person is fair if the item is very heavy and installation is required.
If you travel often, it helps to know when and who to tip. Generally it’s worth a dollar or two a bag for the skycap to handle your luggage. When you arrive at your hotel, tip the bellhop ten bills for carrying your luggage and an extra five for showing you to your room. The bellhop is a good friend to have at a hotel and his loyalty can be purchased. For more questions and answers on tipping, check out tipping.org.
We hope these little tips make things a little easier the next time you’re wondering about leaving a little tip of your own.
And that’s another Daily Idea.
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