Many people are tipping their babysitters, housekeepers and teachers this holiday season, but often by the same amounts as three years ago.
A Bankrate survey released this month found housekeepers and child care providers are set to get median tips of $50 apiece, the same average level as in each of the past three years — even though inflation has shaved $5.81 off that gratuity’s buying power since December 2021.
But the holiday spirit of generosity is alive, Bankrate senior industry analyst Ted Rossman said of the findings, especially when it comes to “people that we see and interact with regularly”: Year-end tipping intentions rose in five of the six service-sector roles the consumer finance company looked into this year.
“Across the board, there’s been a decline in tipping,” Rossman said, “so the fact that [planned] holiday tips are basically where they’ve been the past few years is not bad in the broader context.”
The findings come in a year-end season fueled by value-driven consumers who are hungry for bargains and wary of overspending. Inflation has stalled at an annual rate of 2.7%, just above the Federal Reserve’s 2% target. And while discounts have been competitive and some seasonal purchases are getting more affordable, many households remain pinched by grocery prices and other routine expenses that continue to inch higher.
A Bankrate survey released just six months earlier found consumers pulling back on how frequently they tip hairstylists, servers and drivers. The share of adults who said they always offered gratuities fell 8 percentage points for each of those roles since 2021, when the economy was reopening from the pandemic and service worker appreciation was running high. More recent data indicates gratuities at sit-down restaurants have been pretty anemic lately.
So perhaps it’s not surprising that mail carriers and teachers aren’t expected to get fatter tips this year — $20 and $25, respectively, according to Bankrate, the same levels as last holiday season. Landscapers, gardeners and snow removers will be tipped $30 on average, $7 less than a year ago.
The good news, Bankrate found, is that many workers could be handed a few more envelopes. An estimated 57% of consumers plan to tip their housekeepers, up 3 percentage points since last year and 10 since 2021, the biggest post-pandemic jump. Fifty-five percent of people plan to tip child care workers, up from 51% last year and 41% in 2021.
When it comes to the holidays, surprisingly, young adults are the most generous tippers.
Ted Rossman, Senior Industry Analyst, Bankrate
But many households appear unwilling or unable to offer gratuities. A recent Wells Fargo survey indicated just half of people plan to offer holiday tips or gifts. Those who do are more likely to be young adults. The bank researchers found 62% of those ages 18-34 plan to tip, far ahead of the 43% of those 55 and up.
Bankrate likewise found more generous intentions among younger people, even though they typically “have been viewed as worse tippers than older adults,” Rossman said in a release of the findings. “It’s still true that Gen Zers and millennials are worse tippers at restaurants and many other year-round tipping venues. But when it comes to the holidays, surprisingly, young adults are the most generous tippers.”
Whatever your age or budget, experts offer a few tips for tipping this season.
Etiquette gurus at the Emily Post Institute say gifts, cash or a combination of the two are often acceptable. When it comes to tipping people who work with kids, they recommend offering nannies up to one week’s pay and babysitters up to the total they’d earn in a typical session. Day care providers can be tipped anywhere from $25 to $70, perhaps along with a small gift from your child, they say.
Personal finance experts at Fidelity suggest pooling resources for a class gift or tip as a way to thank teachers collectively: “Instead of getting 20 ‘World’s Best Teacher’ coffee mugs, for instance, your child’s teacher could get one large gift, such as a gift card to a restaurant or retailer.”
Some service workers are constrained by their employers from accepting gifts of certain amounts or anything at all. That’s true for many nursing home staffers, home health aides and government workers like garbage collectors or mail carriers, so Emily Post experts say it’s always smart to check company or agency policies first.
And if you can’t afford to tip, inexpensive personal gestures are always better than nothing. A thoughtful handwritten card can go a long way — and a brief personal note should always accompany any money or gift you’re offering anyway, experts say. A batch of cookies or a homemade craft can also let you show your appreciation on a budget.
