When to Tip and When to Pass: A Financial Expert's Guide to Modern Tipping Culture

The American tipping landscape has shifted dramatically in recent years. What once felt like a straightforward practice tied to restaurants and hospitality has morphed into something far more complex. According to Pew Research, younger Americans ages 18 to 29 are more likely to view tipping as obligatory—38% compared to just 24% of those over 65. This generational divide reflects a broader cultural transformation, particularly accelerated by post-pandemic shifts in the service economy.

The Post-Pandemic Tipping Explosion

Since COVID-19, tipping requests have infiltrated unexpected places: gas station pumps, vending machines, arcade counters, and self-checkout lanes. This proliferation has sparked considerable debate about where the practice should end. Financial experts are increasingly weighing in on the question of financial responsibility versus social expectation.

Where Tipping Still Makes Sense: The Service-Dependent Jobs

Restaurant Staff and the 15-20% Standard

Sit-down restaurant servers remain the clearest case for tipping. Many wait staff earn minimal base wages—sometimes as low as $2 per hour—with gratuities forming the bulk of their compensation. When someone delivers your meal, accommodates special requests, and creates a pleasant dining atmosphere, a tip is justified.

According to Dave Ramsey and Ramsey Solutions’ guidance, the standard should hover around 15% to 20% for competent service, with 25% reserved for genuinely exceptional experiences. Fast-casual establishments and quick-service restaurants operate differently, however. Since employees don’t personally serve food or manage table interactions, tipping becomes optional rather than expected.

Food Delivery: Distance and Effort Warrant Compensation

Food delivery represents another legitimate tipping scenario. When a driver navigates traffic, weather, and unfamiliar routes to bring hot meals to your doorstep, that effort deserves recognition. Ramsey Solutions recommends 10% to 20% for reliable, prompt service.

Takeout presents a murkier situation. Unlike delivery, you’re the one investing time, fuel, and energy by traveling to the restaurant. A small token of appreciation is acceptable if you wish to recognize the kitchen staff’s work, but genuine obligation doesn’t apply here.

Service Professionals Beyond Food

The service sector extends well beyond dining. Massage therapists, ride-share operators, hotel staff, barbers, and childcare providers all warrant consideration. The tipping threshold should reflect service difficulty and professionalism. A babysitter who manages household tasks or a barber who delivers exceptional results might earn 15-20%, while a bellhop handling a brief elevator ride merits just a few dollars.

Where Tipping Shouldn’t Be Expected

The Self-Checkout and Kiosk Dilemma

Automated payment systems increasingly prompt tip requests, yet this represents what LendingTree’s chief consumer finance analyst Matt Schulz termed “guilt tipping.” When you perform the labor yourself—scanning items, processing payment—no service worker deserves compensation. You shouldn’t experience anxiety or guilt when declining these requests.

Retail Transactions

Retail cashiers’ earnings don’t depend on gratuities, so standard purchases don’t warrant tips. If an employee demonstrated exceptional helpfulness—locating specific merchandise or assisting with heavy items—a discretionary tip acknowledges that extra effort. However, never feel pressured by pre-loaded percentage suggestions on card readers.

The Guiding Principle: Intentional Tipping

Personal finance expert Angelica Prescod offers clarity: “Tip on the service that you’re actually wanting to tip for.” This encapsulates the modern approach—tipping should reflect genuine appreciation for service quality, not social pressure or default settings.

Card readers often default to 25% as the starting option. You retain full authority to select “custom” and choose an amount aligned with your judgment. The absence of obligation means you control the transaction.

Understanding these distinctions allows you to navigate tipping scenarios with confidence and financial wisdom, balancing gratitude for genuine service with protection against normalized guilt-based spending.