How Much Should I Leave For A Tip?

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How Much Should I Leave For A Tip?

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January 11, 2012

Even though I have workaholic issues, I did manage to do a few fun things with my family over the holidays. We caught some movies, saw an Atlanta Hawks basketball game, went to the Peach Drop, and most certainly managed to eat out at some local restaurants. Every once in a while, I'm just befuddled on how we got to where we got to in America. There are large issues politically and financially that are facing us, but it just wouldn't be a smart money moves column if I didn't gripe just a little bit about the whole notion of 'gratuity added' on my bill at the restaurant.

First off, let's remind everyone just what the word 'tip' means as it pertains to leaving extra money at the end of a meal at a restaurant. Dictionary.com defines tip as a small present of money given directly to someone for performing a service or task. In most countries, tipping is not mandatory but is common that people will do this when they receive exceptional service. In the United States today, we've almost made tipping an expectation. It used to be in the 1980's that about 10% was the norm for a tip and today it is almost expected that it is in the 20% range. A 'tip' is truly supposed to be bigger when you received superior service and smaller when you receive inferior service. Most waiters and waitresses just expect the tip no matter what their level of service is at the meal.

The thing that really got under my skin over the holidays is that most restaurants will put something on the menu that says gratuity will be added for parties of more than a certain amount. This means parties of 8, 10, 12, or some larger amount of patrons so you don't have a big group of people who stiff the servers at the end of the evening. Somehow restaurants have now set that rate at 18% or 20%, and they are so kind to add an insulting line of 'additional tip' just in case we are too dumb to realize a tip was left already. Or maybe that we are too drunk and will just put a number because we feel guilty that the line is left blank. My family ate at a local restaurant in the Perimeter in Atlanta over the holidays that now put big parties at 5 or more. Yes, 5 or more. This essentially means that unless you are a party of 4 or less, you are guaranteed to pay 18% gratuity even if the service is horrible. This all flies in the face of tipping as the service we got that day was less than stellar, but I had no choice but to pay the bill.

Even takeout Chinese restaurants leave you a tip line when you pick up your order. If the guilt impulse hits you when you go for that pick up, you'll likely write $2 or $3 just because you don't want to feel like a cheapskate. It's just too much for me that everybody has a tip angle today. You might as well get a bell and a Salvation Army bucket.

I think no matter what the guidelines say about what's proper, you should leave the small present of money for your server based upon how good you think the service was at the meal. If it was great, you could leave more than 20% and if it was terrible than you need to leave a tip to let your server know that the experience was less than acceptable.

Written by:

Ted Jenkin, CFP®, AAMS®, AWMA®, CRPC®, CMFC®, CRPS®

Co-CEO and Founder of oXYGen Financial, Inc

Visit to www.oxygenfinancial.net to request a free consultation with the leading financial experts for people in their 20's, 30's, and 40's in the country.

Ted Jenkin is one of the foremost knowledgeable professionals in giving financial advice and Smart Money Moves to the X and Y Generation.

Securities and Investment Advisory Services offered through NFP Advisor Services, LLC (NFPAS), Member FINRA/SIPC. Oxygen Financial is not affiliated with NFPAS. NFPAS does not provide tax or legal advice. This site is published for residents of the United States only. Registered Representatives and Investment Advisor Representatives of NFP Advisor Services, LLC (NFPAS) may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed. Not all products and services referenced on this site are available in every state and through every representative or advisor listed. For additional information, please contact NFPAS Compliance Department at 512-697-6000. PLEASE NOTE: The information being provided is strictly as a courtesy. When you link to any of the web sites provided here, you are leaving this web site. NFP Advisor Services, LLC makes no representation as to the completeness or accuracy of information provided at these web sites. Nor is NFP Advisor Services, LLC liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, web sites, information and programs made available through this web site. When you access one of these web sites, you are leaving our web site and assume total responsibility and risk for your use of the web sites you are linking to.

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Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice. https://Bit.ly/KF-Disclosures

This site is published for residents of the United States only. Registered Representatives of Kestra IS and Investment Advisor Representatives of Kestra AS may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed. Not all products and services referenced on this site are available in every state and through every representative or advisor listed. For additional information, please contact Kestra IS Compliance Department at 844-553-7872.

PLEASE NOTE: The information being provided is strictly as a courtesy. When you link to any of the web sites provided here, you are leaving this web site. Kestra IS and Kestra AS makes no representation as to the completeness or accuracy of information provided at these web sites. Nor is Kestra IS and Kestra AS liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, web sites, information and programs made available through this web site. When you access one of these web sites, you are leaving our web site and assume total responsibility and risk for your use of the web sites you are linking to.