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The pandemic and rising inflation have wreaked havoc on everyone’s budgets, and most Americans are struggling to adjust. As the government tries to right the ship and correct the economy, workers are wary of returning to service positions with low wages and few (if any) benefits. Although tipping 15-20% is common advice, there is concern that tip averages are falling with so much uncertainty in the economy. Should we tip more due to inflation?
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A recent GOBankingRates survey asked more than 1,000 Americans about their tipping habits and found that different generations tip differently, specifically younger ones. When asked how much they tip when restaurant service is poor, 37% of Zoomers (ages 18-24) pay 10% or less. Compare that to the 26% of Millennials (ages 25-44) who answered the same. Surprisingly, millennials seem to be the most forgiving, with 30% of them still tipping 20% or more when they’ve had a bad dining experience.
The survey also found that when service is good, bag strings loosen. Across all generations, 35% or more tip 20% at the end of a good meal with great staff. On the other hand, 6% of Gen Z members admit to tipping less than 10%, which is the highest percentage of any generation. Some may see this as Gen Z being stingy with their bank accounts, but there’s more at stake here than just cheating a waiter.
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The oldest Zoomers just turned 25, which means most of them are still in school and a minority of them have just entered the workforce. Entry-level jobs aren’t known for paying much, and what they do pay probably won’t stretch too far for the average worker. Gen Xers and Baby Boomers have had much longer to accumulate wealth and get high-paying jobs. And let’s face it, it’s much easier to be generous when you have a lot to start with.
Jenny Ly, professional travel blogger and entrepreneur at Go Wanderly, gave some advice on tipping with such high inflation. “Basic etiquette is to always practice generous tipping,” she said. “It is entirely your choice whether you decide to tip 20% or 25%. The general rule of thumb is to be as liberal as possible for yourself. Create a budget that gives you room for hefty tips when you plan to dine out. The crux of the situation is that if you are able to tip more, you have to be generous.”
Best general advice: When budgeting for dining out, be sure to include tips in your total. And regardless of good or bad service, always opt for generosity and tip your waiter.
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Source: www.gobankingrates.com