Money Smarts Blog

Once upon a time, in a previous life, I worked for an upscale salon and day spa. One weekend, an entire bridal party came in for manicures, pedicures and facials followed by hair and makeup for the big day. The bride told them before arriving that she’d cover the tip (meaning, the tip for renting out the spa, not the tip for each employee for the services provided). That day, my coworkers and I — who all worked on commission and relied on tips to support our income — missed out on gratuities for a full day of services. The (unfortunate) end.

The moral of this story: gratuity matters.

Why? These workers are providing you with a service and, more often than not, are getting paid minimum wage to do so. In fact, it’s perfectly legal for employers to pay less than minimum wage if tips make up the difference. A few extra dollars are valuable to these workers and make a nice “thank you” for a job well done.

In a world where tipping has become expected, you might be asking yourself: Is there anywhere I don’t have to tip? Generally, fast food counters and coffee shops don’t expect gratuities (although there might be a tip jar just in case you’re feeling extra generous). The same goes for contractors, electricians, plumbers and others you hire to perform certain jobs.

Standard gratuity is between 10% and 20%

Server/Waiter

When tipping at a restaurant, try to give cash if you can. Sure, adding a tip to your credit card is more convenient for you as the customer, but card tips won’t reach your server until their next pay period. Plus, tipping on a card can take out additional taxes and credit card processing fees. An appropriate tip for standard service is 15%; 20% if your service is above average.

Regardless of the method you use to tip, know that some establishments work in a tip pooling environment. This means your server might not receive your whole tip — rather, it could be “pooled” together at the end of a shift and evenly distributed among all servers and back-of-house staff, like cooks and dishwashers.

PRO TIP: WHY TIP CARRY OUT? More time and attention goes into packing your to-go order than you realize. Your favorite restaurant is still taking the time to prepare and deliver your food curbside, so a tip of at least 10% isn’t unreasonable.

Hairstylist/Salon services

Many hairstylists rent their chairs, buy their own tools, pursue continuing education to keep up with trends and develop their own client base. Plus, they’re great listeners (where else would you go for a good vent/therapy sesh?). Tipping is up to your discretion, but 20% is pretty standard, maybe more for a fabulous colorist who makes you feel like a queen or king. The same applies for a massage therapist and nail technician.

PRO TIP: CAN'T AFFORD TO TIP? Consider rethinking your plans. Although gratuities aren’t mandatory, they’re certainly appreciated. If you’re willing to pay $80 for a massage, you should also plan to spend the traditional 20% gratuity (which in this example equates to $16).

Wedding vendors

For any vendors you use on your special day, check to see if a service fee’s included in your contract already. If it’s not, consider gratuity for your setup staff, delivery drivers, officiant, musicians, reception staff and any others who help make your event go smoothly. TheKnot.com has a great tipping cheat sheet for vendors that’ll come in handy as you work out your wedding budget.

Rideshare driver

Whether you’re being a responsible adult using a rideshare driver as your lift home, or you’re on a business trip without a car, using Uber, Lyft or another rideshare service is an added convenience. Plus, from the driver’s perspective it takes a lot of behind-the-scenes expenses (like gas, vehicle maintenance, insurance and even mobile data plans) to ensure a smooth experience for riders. A tip of $1-2 for short rides and $5-10 for long rides is good etiquette.

Housekeeping

Hotel housekeepers are among of the hardest workers in hotels — and the least recognized. These essential workers perform regular room cleanings each day, not to mention handle your dirty laundry, trash and who knows what else. To show your gratitude, Readers Digest suggests tipping a minimum of $3-5 a day (and perhaps more if they’re helping accommodate special requests).

Happy tipping!