WEEKEND WALLET: How to budget for tipping

Girl counting US Dollar bills, wrapping in envelop. Top view Girl counting Christmas gifts. Woman hands doing budget, estimating money balance for shopping spree. Female accountant paying taxes.
Stock image Photo credit Getty Images

If you think that tipping has gotten out of hand, the holiday season offers no relief. However, it is the time of year when you can sort out who you really want to give an extra tip to.

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“Put together a list: who are the people I want to tip? And I want you to tip them because… you know, it’s people who you have relationships with on a more personal level,” explained business reporter Jennifer Waters. She joined WBBM Newsradio’s Rob Hart this week on the Noon Business Hour.

For example, Waters said she likes to tip the Fed Ex and USPS drivers that bring her packages. Since they can’t accept monetary tips, people can give them gift cards or holiday treats instead.

Waters noted that holiday tipping can look different for everyone. Citing etiquette experts Emily and Lizzie Post, she told Hart that for service professionals like house cleaners, child care providers or hairstylists, the generally accepted holiday tip is equivalent to one day of work or the charge for one service. Other service providers who people may want to tip during the holidays include teachers, doormen, favorite restaurant servers, or garbage pickup crews.

All of those tips can add up during a season when there is a lot of pressure on spending.

“That’s one of the reasons why you should really put together a budget,” said Waters. In some cases, she said that handwritten notes, holiday cards, baked goods and other treats can help spread the holiday spirit without racking up holiday debt.

For more ideas on how to get through the holidays in a financially responsible way, check out WEEKEND WALLET’s guide for economical holiday gifting.

Featured Image Photo Credit: Getty Images