Many Americans pressured to tip more than they'd like, spending $500 extra yearly: report

Tipping has been around since the 1800s as a way to thank many service workers. In 2024, many feel tipping culture has gotten out of hand, with certain businesses not normally asking for a tip, now doing so.

“The iPad flipping around, you can very easily put a prompt for a tip on there," said WalletHub writer and editor Christie Matherne.

More and more people are feeling pressured to tip higher than they would like when going out. This is a feeling often referred to as guilt tipping. A recent Talker Research surveyfound Americans spend nearly $500 extra on tipping a year, which is more than they would like to.

“I think we need to understand why, and when we understand why they’re doing it and why or not we should do it, we can try to solve some of the emotional burdens or the emotional feelings we feel about overtipping or not," said Luis Guardia, a financial advisor and owner of Tuyyo Planning Group in Austin.

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His advice: set a budget that includes tip money before you go out.

“Include the notion that if I get great service, this is how much I have allotted for that,” said Guardia.

“I just feel like if you want good service you should pay for good service," said Tim Heck.

Heck has worked at Barrett's Coffee in Austin for three years. Now a manager there, he says tips can potentially double the average worker's salary.

“It’s the biggest revenue source for every barista here," he said. "Just think about the fact that everybody over there is working really hard and wants to give you a good experience, and you should want to reciprocate.”

CBS Austin asked Heck how much one should tip for their cup of coffee.

“Similar to at a bar you get a beer, it’s like a dollar," he said. "Just a dollar per drink I think is a good standard honestly.”

Guardia suggests tipping 10-15% on items costing just a few bucks. What about tipping for other services? Here is what Bankrate suggests:

• At restaurants, consider tipping at least 18%.
• For ridesharing services like Uber or Lyft, tip 3-5% of the fare and up.
• Tip 5-20% at spas and salons, depending on the quality of the service.