The holidays are a season of gratitude, but it’s also a time when budgets feel tighter than ever. According to Yahoo Finance, between travel, gifts, and higher everyday prices, many people want to thank service providers without adding extra financial stress. “Holiday tipping is alive and well and still as popular as ever,” said Jacqueline Whitmore, founder of The Protocol School of Palm Beach. “Having said that, people’s purse strings are getting tighter and more selective.”

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Guidelines for Common Service Providers

Holiday tipping is for people one goes to for regular services, such as a babysitter, dog walker, barber, mail carrier, or doorman. Gifting cash is one way to show appreciation. According to Fidelity, holiday tips are often calculated in “up to” amounts, such as up to one session’s or one week’s pay rate. They suggest guidelines including one week’s pay for a nanny, the cost of one service for a hairstylist, one visit’s pay for a housecleaner, and $10 to $30 for a newspaper delivery person or trash collector.

Factors Influencing Tip Amounts

These amounts are guidelines, and people are free to tip more. For many, these tips can add up, and it may not be feasible to tip every provider that much. Holiday tips tend to be larger in metropolitan areas due to higher costs of living, while suburban or rural areas often have more modest expectations. The length of the working relationship and the level of support provided are also factors.

Whitmore suggested making a list of people who make your life easier and dividing them into A, B, and C lists. A-listers are priorities for larger tips, B-listers may receive less, and C-listers, like a mail carrier or sanitation worker, “are usually the ones who get little or nothing at all.” Previous tipping history can serve as a benchmark to avoid awkwardness.

Most importantly, people should consider their budget and any financial constraints. “What matters most is giving what feels comfortable for your budget,” said Stephanie Watson, a financial advisor at Northwestern Mutual. “If the suggested amounts feel high this year, it’s completely acceptable to scale down.”

Nonmonetary Ways to Show Appreciation

If holiday tipping isn’t possible, or if certain workers aren’t allowed to accept cash, there are alternative ways to say thank you. “Monetary appreciation isn’t the only way to extend gratitude,” Watson said. “A handwritten note or a small handmade gift can also be a wonderful way to be intentional with your appreciation and not go over budget.”

For self-employed providers, leaving a positive online review can help their business. For workers who can’t accept cash, a snack, warm drink, or small care package is often welcomed. “The goal is simply to let them know their work has made a difference for you this year,” Watson said.

Source: IndexBox Market Intelligence Platform