How to Tip During the Holidays

Find ways to reward workers even in tough times

November 4, 2008

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Who do you tip – and how much? That's a tricky decision even in good economic times. It's one that may get harder in these tough economic times.

However, the December issue of Consumer Reports offers up some timely advice.

The magazine asked a nationally representative sample of almost 1,900 U.S. residents what they gave last Christmas season when the economy was already starting to unravel, and the results showed few differences from the year before.

The big recipients were house cleaners, with 65 percent of those who employ them tipping them last year. They also received a larger gratuity than other service providers, averaging about $50 or an equivalent gift per tip.

Child-care providers also were among the most likely to receive a tip and got the second largest average gratuity amounts -- about $38 per cash tip or gift equivalent.

Consumer Reports found 12 other services providers included in the survey received, on average, between $15 and $25 per gift. These amounts are roughly consistent with findings from past surveys.

"While many families will be looking for ways to tighten belts and reprioritize their spending this year, they still want to thank the people they depend on," said Tobie Stanger, senior editor at Consumer Reports. "Cash may still be a popular option, but there are other ways to sincerely show your appreciation."

Rounding out the list of service providers who typically receive holiday tips in the survey: child's teacher, hairdresser, manicurist, newspaper carrier, barber, building superintendent, pet-care provider, mail carrier, lawn-care crew, school-bus driver, fitness instructor, and sanitation worker.

If the tipping budget is tight this upcoming season, Consumer Reports experts recommend that those wanting to express their gratuity allocate tips in the following ways:

• Give cash to the people you believe need it most. In many cases an extra week's pay or the cost of one session is appropriate.

• For those you tip regularly, like a barber or a hairdresser, a small gift or a card is usually an appropriate way to say thanks.

• Be aware of the rules. Mail carriers aren't allowed to take cash or gift cards that can be exchanged for cash. The U.S. Postal Service says they can accept non-cash gifts or gift cards worth $20 or less. School districts may also frown on cash gifts to teachers.

• For the really tight budget. A hand written thank you note is always appropriate and can go a long way.

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