You may be going out to eat more or finding ways to travel more, but do you know the tipping habits for those places?
You may be surprised that your tipping habits are considered rude, or perhaps you already know you should change some of your tipping practices.
Before you go out and pay a tip, here are some tipping habits you might want to review that could be coming off more rudely than you expected.
Steal this billionaire wealth-building technique
The ultra-rich have also been investing in art from big names like Picasso and Bansky for centuries. And it's for a good reason: Contemporary art prices have outpaced the S&P 500 by 136% over the last 27 years.
A new company called Masterworks is now allowing everyday investors to get in on this type of previously-exclusive investment. You can buy a small slice of $1-$30 million paintings from iconic artists, all without needing any art expertise.
If you have at least $10k to invest and are ready to explore diversifying beyond stocks and bonds,see what Masterworks has on offer. (Hurry, they often sell out!)
You tip on the discounted cost
If you’re trying to make your paycheck stretch further, you may be going out to eat with coupons or finding other discounts to help you save money.
These can be great ways to lower your bill, but you should still tip on the pre-discounted cost and not the final price.
The server didn’t serve you less because you had a coupon or discount, so try to tip on the full amount.
You tip with loose change
You may have a few quarters or dimes that you think are an easy way to tip on top of your cash.
However, some experts in restaurants and services say it’s difficult for workers to deal with loose change in addition to paper cash. Coins weigh more and can be easier to lose.
It’s better to skip the coins and just leave some cash the next time you go out.
You think 15% is an average tip
It’s difficult to know exactly how much you should tip, but 15% is considered the minimum and not the average.
Servers and other people who rely on tips usually have to do so because they get paid less than the minimum wage, which is why 20% has become the standard to tip and help workers earn cash.
Resolve $10,000 or more of your debt
Credit card debt is suffocating. It constantly weighs on your mind and controls every choice you make. You can end up emotionally and even physically drained from it. And even though you make regular payments, it feels like you can never make any progress because of the interest.
National Debt Relief could help you resolve your credit card debt with an affordable plan that works for you. Just tell them your situation, then find out your debt relief options.1
How to get National Debt Relief to help you resolve your debt: Sign up for a free debt assessment here. (Do not skip this step!) By signing up for a free assessment, National Debt Relief can assist you in settling your debt, but only if you schedule the assessment.
You tip with gifts
You may bring gifts for your favorite waiter at a local restaurant or baked goods to your favorite hairdresser when you get a haircut.
But cash is still king no matter how friendly you are with different workers. Plan to pay cash or put a tip on your charge card whenever you’re out instead of tipping with gifts.
You don’t tip if your food is late
One of the biggest frustrations you might have is going to a restaurant and waiting for food that takes forever. However, the delay could be out of your server’s control. Servers are not responsible for the kitchen running behind or staffing issues.
Remember to still give them a tip and don’t use withholding a tip as a way to punish workers for things they don’t have the power to change. Servers typically rely on tips since they have lower wages.
Trending Stories
You can’t afford the tip
It can be frustrating to make dinner at home every night or drink beer with your friends in your backyard instead of going to a bar.
But make sure you’ve budgeted for tips before you go out, and consider staying in or finding ways to save more cash if going out means skipping a tip.
You only tip if you sit down to eat
The pandemic made food delivery more popular, and you may be using sites like DoorDash and Grubhub more often now for convenience.
Your delivery drivers should be tipped for their services even if you aren’t sitting down at a restaurant to eat your food. Consider giving a tip to drivers who usually use their own cars that they need to pay for to deliver your food.
Drivers also need to save money on gas. Help them out with a tip in exchange for delivering food to you.
You don’t fill in the tip line
Tipping has become more convenient with credit card slips, including a line just for a tip.
You may just write a number on the total line and skip doing the math, but it’s a good idea to clearly state the tip when signing the bill.
It can help the server with the total amount when reporting it, and it’s easier to know you’re tipping the right amount.
You tip the same when you travel
The U.S. is actually unusual when it comes to tipping. If you plan to travel abroad, research tipping etiquette for where you’re going and be aware that not all countries have the same unwritten rules about tipping.
You should also review which countries may charge you a gratuity no matter what. Some places in Europe, for example, may add a gratuity to your bill. Don’t pay more than necessary.
Earn cash back on everyday purchases with this rare account
Want to earn cash back on your everyday purchases without using a credit card? With the Discover®️ Cashback Debit Checking account (member FDIC), you can earn 1% cash back on up to $3,000 in debit card purchases each month!2
With no credit check to apply and no monthly fees to worry about, you can earn nearly passive income on purchases you’re making anyway — up to an extra $360 a year!
This rare checking account has other great perks too, like access to your paycheck up to 2 days early with Early Pay, no minimum deposit or monthly balance requirements, over 60K fee-free ATMs, and the ability to add cash to your account at Walmart stores nationwide.
Don’t leave money on the table — it only takes minutes to apply and it won’t impact your credit score.
You like to overtip
Sometimes, it’s nice to reward good service, or perhaps you have extra cash to tip 25% instead of the typical 20%.
But there is such a thing as overtipping, and that can cause your server issues. You may think tipping $40 on a $20 bill is a nice gesture, but it can be perceived as too extravagant, or your server may worry that you didn’t mean to tip that much. If you want to overtip, use cash.
You tip on a pre-tax cost
You may look at your bill and decide to leave a tip based on the cost of your meal or drinks before the tax was included.
But tax should be part of your calculations when deciding how much to tip. Factor in the final cost of the bill and not just the pre-tip cost when you’re figuring out how much you need to tip.
You only tip at restaurants
Tipping at restaurants is considered normal, but what about other locations?
It can be frustrating to carry cash when you’re used to paying and tipping with a credit card, but make sure you have extra cash to tip when traveling.
Consider leaving a tip for hotel workers like the cleaning service that tends to your room, and carry a few dollars for drivers at long-term parking lots who handle your suitcases and get you back to your car.
Bottom line
Tipping in the U.S. has its own unwritten rules, so ensure you follow them the next time you go out for a meal or trip.
If you plan to tip with your credit card, remember to use the best travel credit cards to earn perks and points for your next vacation, and use any money you save as tips throughout your trip.
Carry some cash with you when you can in case you need it to tip workers throughout your day.
Lucrative, Flat-Rate Cash Rewards
FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.
Wells Fargo Active Cash® Card
Current Offer
$200 cash rewards bonus after spending $500 in purchases in the first 3 months
Annual Fee
$0
Rewards Rate
Earn unlimited 2% cash rewards on purchases
Benefits
- Low spend threshold for its welcome offer — $200 cash rewards bonus after spending $500 in purchases in the first 3 months
- Cell phone protection benefit (subject to a $25 deductible)
- Can redeem rewards at an ATM for literal cash
Drawbacks
- Foreign transaction fee of 3%
- No bonus categories
- Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
- Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 19.49%, 24.49%, or 29.49% Variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don’t expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
Subscribe Today
Want extra-cash moves to come right to you?
Stop browsing endlessly. Get proven ways to earn pocket money, help cover rent, and crush your debt — sent to your inbox daily.