Holiday tips are topping out at pandemic-era levels

Many people are tipping their babysitters, housekeepers and teachers this holiday season, but often by the same amounts as three years ago.

Many people are tipping their babysitters, housekeepers and teachers this holiday season, but often by the same amounts as three years ago.

A Bankrate survey released this month found housekeepers and child care providers are set to get median tips of $50 apiece, the same average level as in each of the past three years — even though inflation has shaved $5.81 off that gratuity’s buying power since December 2021.

But the holiday spirit of generosity is alive, Bankrate senior industry analyst Ted Rossman said of the findings, especially when it comes to “people that we see and interact with regularly”: Year-end tipping intentions rose in five of the six service-sector roles the consumer finance company looked into this year.

“Across the board, there’s been a decline in tipping,” Rossman said, “so the fact that [planned] holiday tips are basically where they’ve been the past few years is not bad in the broader context.”

The findings come in a year-end season fueled by value-driven consumers who are hungry for bargains and wary of overspending. Inflation has stalled at an annual rate of 2.7%, just above the Federal Reserve’s 2% target. And while discounts have been competitive and some seasonal purchases are getting more affordable, many households remain pinched by grocery prices and other routine expenses that continue to inch higher.

https://www.nbcnews.com/business/economy/holiday-tips-are-topping-pandemic-era-levels-rcna184511

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