Who to Tip at the Holidays and How Much?

A 2022 Zelle consumer research study found that 48 percent of consumers prefer to receive money as a gift via digital payment instead of by cash or check.​

But not everyone can accept a tip. Check with home health agencies, for example, before handing over any money to employees, since some have policies preventing tips or gifts.​

A new phenomenon called ‘tipflation’​

On the other end of the spectrum is a relatively new phenomenon known as “tipflation” — requests for tips in unorthodox places, such as clothing stores or fast food restaurants, in large part thanks to point-of-sale checkouts.​

“Tipping is discretionary, but this is putting consumers in an awkward and unfair position,” says nationally syndicated etiquette columnist Thomas P. Farley, also known as Mister Manners. “People feel confused, guilty and ashamed for hitting ‘No tip’ when they've got a line of people behind them staring over their shoulder, and a retail clerk who will see what they’ve done once they spin the screen back around.​

“It’s like the walk of shame. Everybody knows what you did or didn’t do.”​

According to a 2022 survey of America’s tipping habits by PlayUSA, nearly half of consumers — 45 percent — report tipping more than they’d like just because businesses are asking. Fifty-one percent say they tip even when they otherwise wouldn’t when prompted by a point-of-sale system.​

The prevalence of those point-of-sale systems irks Sharon Johannesen, 52, of Port Republic, Maryland.​

“I’m like, ‘You just handed me a pizza box over the counter. I’m supposed to give you $4.50?’” she says. “The other thing I worry about is if I don’t tip them and they still have to make the food. Are they going to be mad at me and do something sinister with my pad Thai?”​

It’s the thought that counts​

If you’re having enough trouble making ends meet without worrying about an extra gratuity, remember this: You’re under no obligation to show your gratitude with cash.​

“Tipping is based on respect, gratitude and social circumstances, and not just rules and norms,” explains Parker.​

United Parcel Service drivers are taught to respectfully decline monetary gratuities unless a customer is insistent, so as not to be rude, according to UPS Public Relations Manager Dan McMackin, 61. Over the years, however, heartfelt donations have included hand-knit socks and cookies, recalls McMackin, a former driver who’s based in Atlanta, Georgia. During the pandemic, that has also meant baskets of water, snacks and hand sanitizer.​

“It’s not a monetary amount that is important, but the thought that counts,” he says.​

That’s what Johannesen hopes. Recently retired after three decades as an art teacher, she finds money is a bit tighter than last year, so she is making trinket dishes of oyster shells for her mail carrier, hairdresser, regular delivery drivers and children’s teachers.​

“I think it’s important to thank the people who provide services in our daily lives, and you can do that in small, meaningful ways,” she says. “It’s about saying, ‘Hey, I see you working hard, and I appreciate you.’”​​​​

Editor's note: This article was originally published on December 17, 2020. It's been updated to reflect new information.