16 Smarter Ways To Tip Without Overspending

Somewhere between the pandemic and your last coffee run, tipping changed. Suddenly, there's an increase in digital prompts for tips, higher suggested percentages and tip requests where you weren’t seeing them before.

These trends are real, and so is the frustration many consumers are feeling. It’s called, “tip fatigue.” USA Today reported on a recent Popmenu survey that found that 78% of respondents believe tipping practices “have become ridiculous” — and many blame businesses for trying to shift more of their labor costs to consumers.

With workers in many industries still delivering good service and counting on tips to earn a living, many consumers are searching for a middle ground. Here are 16 ways you can tip smarter without going overboard.

1. Before You Tip, Take a Breath

It’s easy to just quickly hit a button when you’re presented with a screen that offers 20%, 22% and 25% to choose from. Giving yourself three seconds to think it through will help you avoid knee-jerk overspending.

2. Avoiding Picking the Suggested Amount

There should be a “custom tip” option. Use this to select an amount that makes sense to you. It may or may not be one of the suggested percentages.

3. Set a Monthly Budget for Tipping

Staying within a limit won’t just keep things under control. It will also increase mindfulness in tipping situations, as opposed to quick reactions. If you really want to know what’s going on, you can keep track of your tips for a period of time and look for patterns.

4. Create Percentage Rules

Consider the type of service you’ve received. Rules might include higher tips for full service, lower tips (or no tips) for simple transactions. You can also try setting an across-the-board range, such as 15% to 25% for restaurant servers, and move within that based on quality of service.

5. Avoid Tipping on the Tax

When calculating your tip, base it on the pre-tax total instead of the final bill.

6. Make Sure You Aren’t Tipping Twice

Some restaurants and other businesses bake in a gratuity when they calculate your bill. Check to make sure you aren’t tipping a second time, unless the service has been exceptional and you want to show your appreciation.

7. Use Cash, and Keep Small Bills on Hand

It’s less common in the debit card era, but having a few fives and ones can help you tip fairly without just plopping down a ten or a twenty when it’s not merited. Using cash also helps you avoid percentage creep.

8. Reserve Higher Tips for Great Service

For many of us, that used to be the idea though it has often been replaced by just tipping the same amount every time. Instead, evaluate the level of service you received and base how much you tip on that.

9. Know Which Services Don't Require a Tip

This may vary depending on where you live, but it’s worth doing some research, so you aren’t asking “Should I tip for this or not?” quite so often.

10. Prioritize Tips for Human Interaction

Did a human being actually help you? Even if not, some screens will still pump you for a tip. If you did all the work, practice skipping that tip without any guilt.

11. Prioritize the Workers Who Depend on Tips

Some workers genuinely depend on gratuity. Those workers include:

• restaurant servers

• bartenders

• hotel housekeepers

• bellhops

• valet attendants

• hair stylists and barbers

• food delivery drivers

• taxi/rideshare drivers

• nail technicians

• massage therapists.

If you aren’t sure, use your best judgement and then do some research so you're prepared for next time.

12. Set a Specific Limit for Counter-Service Tips

Unless a counter worker really makes your day or your order is huge, a $1-$2 limit might be in order.

13. Prioritize Tips at Places You Visit Frequently

Consider tipping more generously at your regular haunts and normally at infrequent stops.

14. Create a Tip Fund for Year-Round Workers

Setting aside some money for these workers — gardeners, for example — is probably a better use of tip money than mindlessly pressing “25%” at a coffee shop kiosk.

15. Use Businesses That Avoid Aggressive Tipping Practices

Some businesses have heard the tip fatigue customer feedback and are easing up. You can reward them by sending more business their way.

16. Determine Your Tipping Style (and Be Consistent)

Give some thought to what type of tipper you want to be, based on the type of person you are. Then stick to it when the high-pressure requests show up.

This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.