How Much Should You Tip for the Holidays?
Dec. 12, 2002 -- It's an annual question when the holidays come around: In this season of spreading joy, how do we spread the wealth?
Who should we give a holiday tip to, and how much should we spend?
For some of us, our holiday spending habits will be different this year. In a recent Index of Investor Optimism survey, nearly two-thirds of respondents said they would spend about the same amount on gifts this year as they did last year, but a quarter said they would spend less. Only 10 percent said they would spend more.
Given the impending war with Iraq, stock-market volatility and the bleak state of the economy, consumers are making their holiday gift lists, checking them twice and generally cutting them down.
Despite the tough economic times, do not forget to show your appreciation to those who provide you with services and assistance throughout the year. In this slow economy, service industries are banking on their clients.
If you are tipping with money, tips should be paid in cash, directly to the individual. A personal card is not only proper etiquette, but also ensures your gift is not lost in the holiday shuffle. Tips vary across the country, along with the cost of services, but a good rule of thumb is to base it on the cost of services.
Here are my tips on tipping.
1. Personal Care
This category is for the individuals who help with your personal grooming, such as your hairdresser, manicurist and masseuse. For frequent customers who receive consistently good service, the proper tip is equal to the cost of one visit. For example, for a $40 haircut, give a $40 holiday tip. For non-regulars, an appropriate holiday tip is double the usual 15 percent to 20 percent service tip.
2. Child-Care Providers
For full-time nannies, the "holiday bonus" should be equivalent to one or two weeks' salary. For baby sitters who come from time to time, give the equivalent of one day's earnings. Finally, for day-care providers, consider giving a nice gift or gift certificate instead of cash.
3. Mail Carrier
Although those who live in houses have a greater level of contact with their mail carrier, those who live in apartment buildings should not allow their relative anonymity stop them from recognizing their mail carrier's service. Residents of high-rise buildings are at the mercy of their mail carrier to deliver mail that lacks an apartment number, so they should not underestimate their importance. As postal workers are prohibited from accepting cash gifts or gifts valued over $20, a holiday gift valued at anywhere from $15 to $20 is a nice reminder that you appreciate their hard work. You may also want to write a letter of appreciation to your mail carrier's supervisor.
4. Newspaper Delivery Person/Garbage Collector
Similar to the often-anonymous mailperson, your newspaper delivery person can decide the fate (and often the condition) of your morning newspaper. No one enjoys reading a rain-soaked front section, so reward your delivery person with a holiday tip in appreciation of their daily effort to deliver your paper to your door in good form. Likewise, the person who collects your trash also provides an invaluable service. A tip between $15 and $20 is appropriate for both of these service providers. Follow this same rule for laundry and grocery delivery persons.
5. Apartment Doorman/Building Superintendent
Appropriate giving levels in this category vary quite a bit. For those living in urban settings where they rely on a doorman to receive packages, hail cabs and act as security personnel, tips can range anywhere from $25 to more than $500. Average tips, though, range from $25 to $100 per doorman. For your building's maintenance person/superintendent, who is on call 24 hours a day and has helped you throughout the year, consider the same amount. If you tip a doorman or superintendent each time they help, you can reduce this amount. Meanwhile, for those who have little interaction with their doorperson or super, a gift of $25 to $50 is sufficient.
For those who live in communities or buildings where there are "tipping funds," you may want to forgo giving to the fund, and give your tips directly to the individuals who provide you with service, if feasible. Putting a face to the gift makes the act more meaningful and memorable for the individual receiving the tip. But remember, the purpose of a tip is to recognize good work, so consider the service level when determining how much to give each individual.
6. Cleaning Person
It is customary to give a cleaning person the equivalent of day's pay to reward them for their work during the year. For a full-time housekeeper, you should give at least a week's pay for excellent service.
7. Personal Trainer
A personal trainer should receive a tip that is similar to a personal-care provider. An appropriate holiday tip for a personal trainer is equal to the price of one session. In situations where the trainer makes special arrangements or works with you several days a week, consider a more substantial cash gift.
8. Dog Walker/Pet Groomer
It is common to give a holiday tip equal to the price of the given service, but people have a tendency to give a little more to the caretaker of a beloved pet.
9. Don't Tip Some Professionals
It is important to remember that giving money is not always the right thing to do. In fact, tips of money to some professionals like physicians, therapists, teachers, accountants and colleagues are inappropriate. Instead, a thoughtful gift or gift certificate to thank the professional for their hard work and service is recommended.
10. Restaurants and Hotels
There is no rule about tipping at restaurants and hotels this time of year, but people generally tip more. If you usually tip 15 percent, you should tip 20 percent. That holds true across the board for service providers such as baggage handlers at the airport and hotel maids.
Mellody Hobson, president of Ariel Capital Management in Chicago, is GoodMorning America's personal finance expert. Click here to visit her Web site, ArielMutual Funds.com. Ariel associate Matthew Yale contributedto this report.