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Tipping is the practice of leaving extra money for a worker in addition to the bill, as a way of commending them for their service. It’s a common practice in the United States and is often associated with showing gratitude to someone for doing their job well.

However, resentment towards tipping culture has reached a boiling point. In a recent WalletHub survey, 81% of respondents believe tipping has gotten out of control. This frustration stems from several factors, including businesses and self-checkout kiosks requesting tips when they had never done so before. Consequently, many consumers feel pressured, or even annoyed, as prompts to tip seem to appear at a growing number of establishments.

Financial experts have given the phenomenon a name: “ tipping fatigue.” Traditionally, tipping has been linked to restaurants, bars, hotels, barbershops, and salons. However, the perceived pressure to leave a tip has been extended to simple tasks that never asked for extra cash. The WalletHub survey reports that one in five people tip less when presented with a tip suggestion screen while paying their bill.

So, in a time when every dollar counts and expressing gratitude has become a commodity, what can you do to remain mindful and stay on your budget? Let’s break down tipping fatigue and how you can practice proper tipping etiquette without exhausting your budget.

The Origins of Tipping Fatigue: COVID and New Technology

One likely origin of tipping fatigue stems from the height of the COVID-19 pandemic. When restaurants were operating at limited capacity, diners wanted to show their support by ordering takeout and tipping as if they were still dining in. It’s an example of people supporting each other during challenging times. Tipping above the norm at the time, in amounts exceeding 20 percent, was seen as helping essential workers and expressing gratitude.

“When COVID pushed service-based businesses to the brink, tipping became a way for customers to show their appreciation,” Jill Avery, a senior lecturer at Harvard Business School, told the Harvard Gazette. “Now that the pandemic is over, new technologies have enabled companies to maintain and expand the use of digital payment nudges.”

Point-of-sale (POS) technology is one of the significant factors that Avery references. As businesses shifted to digital-first payment methods, transaction screens have added tip prompts to the checkout process.

As the economy shifted to a post-pandemic environment, the expectation to tip higher than normal remained. Avery observes that many apps provide tipping suggestions. Higher amounts are replacing historical expectations of 10 percent, 15 percent, and 20 percent. Consequently, tipping suggestions from these apps are resetting expectations for what constitutes a proper tip.

Tipping as a Form of Social Pressure

The technology now used to conduct everyday business transactions has also given rise to another angle on tipping culture. That is, mounting social pressure.

Tipping has become a more personal matter with the emergence of new technology. Imagine you’re paying for an order at your local café, and the barista presents you with a tablet that brings up the tipping screen. It can feel like there’s great pressure to tip now that you’re on the spot.

Sean Jung, a professor at Boston University, says that feeling is a real economic force. He tells NPR that the pressure to tip is a form of “nudging.” Thanks to this new development in tipping culture, a practice that used to be voluntary now feels like an obligation.

Going back to our café analogy, imagine the embarrassment you (and the barista) might feel if you left less than the suggested tip right in front of them. It’s a far cry from dropping spare change in a tip jar or leaving a few dollars on the table.

Now that we know where tipping fatigue comes from and what has made it so frustrating, what are the actual expectations around tipping?

Observing Mindful Tipping Etiquette

At its core, tipping is largely seen as a voluntary practice. You are not required to tip. However, there may be situations where it is a good idea.

It’s equally important to take the context of tipping into account. For example, in many states across the country, employers can pay less than the minimum wage to food service workers. This means that tipping is used to offset these lower wages. Tipping fairly can go a long way in supporting the workers who are also part of your community.

Generally, 20% of the pre-tax amount on your bill is considered a generous tip. However, that number may change depending on the industry and the quality of service you’ve received. Here are some tipping suggestions from NerdWallet and etiquette experts:

• For servers in sit-down restaurants, aim for 15% to 20% of the bill pre-tax.
• Picking up a takeout order can range from leaving a few dollars up to 15%.
• Over-the-counter service, like baristas, tips are discretionary and can range from $2 to $3, up to 20%.
• For bartenders, it’s recommended that you tip a dollar or two per drink or 15% to 20% of the tab.
• Food and grocery delivery drivers’ suggested tips are at least 15%.
• Tips for rideshare drivers can be 15% to 20%.
• Valet service tips can range from $2 to $5.
• For services like haircuts, eyelash extensions, waxes, and manicures/pedicures, 15% to 20% is recommended.

To avoid tipping fatigue, it’s important to remain mindful of where tipping is expected versus where it isn’t. In places where it is expected, factor in the potential tip cost on top of what you were planning to buy. A good baseline is to add 20% to any service's price before you commit.

Tipping Culture and You: Spend With Intention

The key takeaway to prevent tipping burnout is awareness. Understanding good tipping practices can go a long way in helping you make intentional choices that align with your values and budget.

By knowing where tipping is expected, you can regain some peace of mind and save your money for the places, things, and activities that matter most to you. At the same time, tipping is your chance to show your appreciation for the people who go above and beyond to make your experiences the best they can be.

Enhance your everyday budgeting knowledge with First Florida. For more financial tips, check out our Featured Articles section, where we cover topics that help make your money work smarter.