Saving Money on Tipping

One of the subjects that always gets the readers here riled up a bit is that of tipping. There are strong opinions on both sides of the issue. So strap on your seat belts -- this could be a fun one.

With that said, I thought I'd share MSNBC's six ways to save on tipping this holiday season:

1. Focus on a few people. If you're scaling back on whom you tip, focus on those you see most often or are in your home, such as child-care providers. Also consider their financial situation.

2. Team up with others. Ask others to pool money for a gift. One nice present may be more appreciated than several small gifts anyway.

3. Make a donation. Many charitable organizations will send a note simply stating a donation has been made in the person's name, without specifying a dollar figure. Donations are also tax deductible.

4. Buy in bulk. If you've got a lot of people to tip or give gifts to, consider buying in bulk at a wholesale warehouse. For instance, you buy jams, biscuits and teas and put together small gift baskets yourself.

5. Cook up your gifts. Baked goods, whether made from scratch or from a pre-made mix, are popular, thoughtful and cheap. Just be sure you're aware of food allergies and restrictions.

6. Small gestures. Even if you can't afford to give any gifts this year, a card expressing your thanks lets people know how much you appreciate them. Small touches, such as adding a single flower, can go a long way, too.

I'll start by saying that our tipping is rather limited because we just don't have that many people who provide services to us. We don't have a house keeper, personal trainer, lawn maintenance company, etc. But for the few people we do tip (our babysitter, postman, etc.), we're not cutting back at all. We give them good tips (the postman has a $20 limit based on the law) and show our appreciation once a year in this way. Yes, we pay them already (either directly or through taxes), but a bit extra is a nice way to say thanks for the ways they often go the extra mile for us.

That said, some of you may need to cut back for financial reasons. I'll let all of you duke that issue out in the comments -- whether we all sacrifice enough ourselves to be able to tip those that serve us. For now, I'm going to comment on the six ideas above. Here goes:

1. Way do this anyway since we don't have that many service people in our lives.

2. Great idea. We do this for my son's basketball team -- we all donate something and get one big gift for the head coach.

3. Personally, I hate the "donation in your name" idea unless you're absolutely certain the person has a strong affinity for the charity. Most of the "gifts" I've ever received from people in this way are donations to organizations I wouldn't give to myself.

4. Another nice idea -- it combines the cost savings of "make it yourself" and "save by buying in bulk."

5. A great idea. I did this last year for the people at work. My wife makes the best homemade bread (she grinds the wheat herself -- the whole nine yards) and it is to die for. I gave everyone here a loaf for Christmas last year (along with a nice note.) It was a big hit.

6. Of course, something is better than nothing.

How about you? What are you doing tip-wise this holiday season?

Comments

[Larry]

I think that the main problem is not with how much to tip but whom to tip and when.

Growing up, I have always been taught to tip the postman, hairstylist (Beauticians), waiters, and anyone who helps you with large lifting or extra work at either a grocery store or hardware store.

I think that the only time you need to tip professions outside of these is if they are dealing with you enough so that they make 1/5th of thier total income from you. In that case, do not think of it as a 'tip' but rather as a Holiday bonus.

Larry

[Costanza]

I always make up a bunch of cards that say a gift was given in their name to "The Human Fund" then pass them out. It works pretty well and doesn't cost me anything.

[Jessica]

My husband and I would like to provide a small gift (either cash or baked goods) to our mail carrier and garbage men. However, it's rare that we see these people to deliver the gift in person - other than our mail carrier who we occasionally on Saturdays.

For those of you who provide tips, how do you leave them for these two services? We have a mail slot into our house rather than a mailbox, so we can't leave a gift in a mailbox for our mail carrier. As for the garbage men, I'm concerned a card with cash might get overlooked and am not crazy about the idea of leaving baked goods next to our weekly trash. Thanks in advance for suggestions!

[Bronco]

Excellent, Costanza! I love it.

[Caleb Nelson]

I don't have a scope of people to tip during the holiday, but one day that'll change. I served for a while through college, and if you were to give anything over the norm, it is greatly appreciated. I'm sure that most working people are used to getting shorted during the holidays when budgets tighten, so anything would be noticed.

Caleb

[Greg]

Tips: Budget for it. If you budget $X per year for a personal trainer, budget $X + tip.

Gifts: Unless you know it is what somebody wants and can use, consider consumables....especially hand made (I liked the bread). I used to roast my own coffee and give 1/2 lb decaf and 1/2 regular in a couple inexpensive mugs.

I also agree using caution "donations in the name of..." If this is done, choose something benign like a local food bank.

Jessica: Wrap it well and hang it on the door or trash can (lot of platic bags, maybe a box) with their name on it.

[Ron]

(Yes, we pay them already (either directly or through taxes)

One minor correction is needed here: The Post Office receives NO funding from any taxes the sole funding is from sales of postage, ect. As a matter of fact something most people don't know is that any profit they make is taken and put into the governments general fund which is one reason they never stay in the black. Has something to do with being non-profit. Ahh, good ole sound government thinking.

[Cathy @ Chief Family Officer]

Wow, your wife sounds seriously awesome - she grinds her own wheat? Can you have her write a post about that? (If you don't think it's appropriate for FMF, I'd be happy to publish it on CFO. It sounds fascinating.)

[FMF]

Cathy --

Yes, I think you two would get along well.

I'll ask her about doing a post. :-)

[guinness416]

If you don't want to tip the garbage man, trust me, he has seen it before and won't care. But don't make up a charity or some other smartarse response. That's pretty insulting to a guy just doing his job.

[john]

tip only if you feel like you are getting great service.

[Justin]

@John: I feel you may be missing the relationship between a small tip and getting great service. One can lead to the other.

[CommRE]

@ guinness416 - the "Costanza" post was a reference to a "Seinfeld" episode. I would be shocked if someone actually did that.

I too have struggled with how to tip the garbage guys, postal carrier, and newspaper delvery person. I never see them and leaving cash or gifts outside in my neighborhood is not a great idea. Odds are the recipients won't get them.

[Umpa]

Personally, I would like to say that as a former Pizza delivery driver, that cutting back on tips to even zero is understandable in this economy. The unemployed should be even envious that they are working. As for myself, I am no longer tipping. In fact, I even go to the Sikh Temples and eat free langar daily to cut down my grocery shopping cost by 80%.