Three out of four Americans believe the tipping culture is out of control. Apparently, these sentiments aren’t deterring people from tipping.
Service providers hoping for more tips this holiday season may be in luck, a new study finds.
A survey of 2,403 U.S. adults found that more people plan to tip their service providers this year than last year, according to financial services firm Bankrate, which released its findings Monday. Much of this holiday gratitude may come from an unexpected source: members of Generation Z. The survey found that young people tend to give generously more frequently during the holiday season than older generations.
Dean Redmond, a 24-year-old server in Brooklyn, New York, who creates social media content about his job, acknowledged that customers leave bigger tips during the holidays. He said that while there are generous people in every age group, he cannot pinpoint why Gen Z tips service providers more than other generations. It’s not because they watch videos like his about what it’s like to work in the service industry or see people criticized online for not tipping. I guessed that.
“Younger generations are more willing to tip, even if the service is terrible,” said Redmond, who has 294,000 followers on TikTok. “The older generation has a sense of, ‘If you treat me well, I’ll treat you well.’
Holiday Sales: Shop this season’s top products and sales, handpicked by our editors.
Why do people say they tip?
According to the survey, 80% said the most common motive for tipping on holidays is to say “thank you.” The next most common reasons for tipping were “to reward particularly good service” (47%), “to be generous” (40%), “because it’s expected of me” (17%), and “to provide better service next year” (17%). “To receive it” was 15%.
Read more: From Gen Z to baby boomers: How much money does each generation think they need to be successful?
The study also found that more people plan to tip service providers this year, but the amount they plan to tip is in line with recent research.
Which service workers do people tip? How much is each?
Americans surveyed plan to tip their housekeeper or childcare worker $50, their child’s teacher $25 and their mailman $20, the same amount as last year. Landscapers, who received an average of $37 last year but are expected to receive $30 in 2024, and garbage collectors, who are expected to receive an average of $20, or $5 less than last year. reported that they planned to give a smaller tip.
Gen Z adult members, those between the ages of 18 and 27, planned to tip the highest in five of six service provider categories. Millennials trumped them with a plan to tip their landscaper the most of all generations surveyed.
Gen Z and Millennials were also the most likely to tip garbage collection companies at 36% and 33%, respectively. In contrast, only 22% of Gen
Ted Rothman, senior industry analyst at Bankrate, said younger Americans have traditionally been thought to tip less than older adults, “mainly because they tend to have less money.” “And because they’re not as accustomed to social norms.” “It’s still true that Gen Z and Millennials are worse at tipping in restaurants and other year-round tipping places. But when it comes to the holidays, young people are the most generous tippers. is.”
Another study released this week found that Gen Z has another unique characteristic around the holidays. They are the generation most likely to scroll through negative content online, become pessimistic about the future, and buy things as a coping mechanism. This trend is called “catastrophic spending.”
Contact Rachel Barber at rbarber@usatoday.com and follow her at X @rachelbarber_
