The Holiday Tipping Guide From a Financial Advisor

The holiday season may be filled with joy, but when it comes to tipping, it can also stir up uncertainty: Who deserves a tip? And how much is appropriate?

First off, "should" makes tipping sound obligatory—it's not. A holiday tip is a way to show appreciation for those who have helped you during the year. It is not a duty that must be done.

Skipping it should not lead to awkward moments or cold looks. If the term "tipping" feels a bit stiff, think of it as a holiday bonus instead.

Here's a guide to help you spread cheer—and a little extra cash—this season.

Establish a budget

Nobody wants to feel like a Scrooge, but going into debt to play Santa isn't worth it. A LendingTree survey found that 34% of Americans went into debt during the holidays last year. They had an average of $1,028 in holiday-related debt.

To avoid this, decide on a sum that fits your budget. Include tips as part of your year-end planning, and if your budget doesn’t allow for the suggested amounts, keep reading for alternatives.

Create a list

Consider the people who help you all year. This includes those who care for your children, like nannies or babysitters. It also includes those who look after your pets, such as dog walkers or groomers.

Don't forget the staff who maintain your home, like housekeepers, doormen, and maintenance workers. Lastly, think about those who support your personal care, like hairstylists and personal trainers.

Everyone’s list will look different and can grow quickly, so be sure to review it carefully. Think about tipping the people who have helped you the most lately. Consider how often you use their services and how long you have known them.

Use the "up to" guideline

For holiday tipping, Lizzie Post, co-president of the Emily Post Institute, suggests letting the cost of the service guide your tip. She recommends applying "up to" amounts, such as "up to a week's pay" or "up to the cost of one session." If you’ve had a long-term, positive relationship and it fits your budget, you can tip more generously.

In addition to the suggested amounts, Post also advises including a thoughtful card expressing your gratitude for their efforts throughout the year. This adds a personal touch, making the gesture feel less transactional and more in line with the holiday spirit.

Here’s a breakdown of common service providers and appropriate tip amounts:

●      Babysitter/nanny: one session’s pay or one week’s pay

●      Daycare provider: $25 to $75, depending on the care hours

●      Hairstylist/barber: the cost of one service

●      Home health aide: one week’s pay

●      Housekeeper: the cost of one cleaning

●      Landscaper/snow plower: one session

●      Massage therapist: one session

●      Manicurist/pedicurist: one session

●      Newspaper delivery: $10 to $30

●      Personal trainer: one session

●      Pet sitter/dog walker/groomer: one session

●      Trash collectors: $10 to $30 per worker

While cash is traditional, it’s perfectly acceptable to tip through a cash app, according to Myka Meier, author of Modern Etiquette Made Easy. Just be sure you’re sending the tip to the right person—confirm their details directly if necessary to avoid any mix-ups.

Think beyond cash

If holiday tipping is pushing you past your budget, consider alternative ways to show your appreciation. For example, bake some holiday treats and pair them with a homemade card expressing how much their service means to you.

Besides, some workers aren't permitted to accept cash or gift cards. For example, USPS mail carriers can only accept non-cash gifts worth $20 or less. FedEx employees can accept gifts up to $75. UPS advises drivers to avoid cash, but they often receive nice gifts. These gifts can include snack baskets, water, cookies, socks, or even kids' artwork.

Physical gifts may also feel more fitting for others, such as children's coaches, nursing home staff, or teachers. Just ensure the gift is something they'd enjoy. Check for allergies before giving homemade treats and avoid gifting wine unless you're certain the recipient drinks alcohol.

Combine efforts

Another option is to organize a group gift. Rather than your child’s teacher receiving 20 "World’s Best Teacher" mugs, they could get one meaningful gift, like a gift card to their favorite store or restaurant.

In some apartment buildings, residents pool together tips that are then distributed among the staff. If your building doesn’t do this yet, think about starting a tip collection. This way, neighbors can give what they can.

At the office, you can gather donations for a group gift. This shows appreciation for the housekeeping and mailroom staff.

If you're short on cash, give a heartfelt card

Even though inflation has eased compared to recent years, everyday costs might still be squeezing your budget. Skipping a tip isn't the same as leaving coal in someone's stocking. Most people understand, and they’d prefer you continue using their services without a holiday tip than stop altogether.

At the very least, take a moment to write a kind note to show your thanks. If you feel okay, mention your situation too.

Don’t worry

Much of the stress surrounding tipping can arise from concerns about not giving enough or comparing yourself to others. People often fear appearing ungrateful or impolite by not tipping the right amount.

Fortunately, this isn’t a competition.

Bottom Line

Holiday tipping doesn’t have to be a source of stress or anxiety. Focus on expressing gratitude in a way that feels right for you, whether that’s through cash tips, thoughtful gifts, or heartfelt notes.

Remember, the spirit of the season lies in appreciation and kindness, not in obligation. Ultimately, what matters most is the thought behind your gesture, ensuring that those who support you throughout the year feel valued and recognized. Happy holidays!

Sources:

https://www.fidelity.com/learning-center/smart-money/holiday-tipping-guide

Disclosures:

This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.

This material is provided as a courtesy and for educational purposes only.

These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information