Many Americans are wrestling with how much to tip (or whether to give at all) this holiday season.
According to Bankrate’s 2025 Holiday Tipping Survey, the percentage of people planning to tip everyone from housekeepers to teachers has dipped compared to last year.
Fewer households are tipping in 2025
For households that use these services, tipping levels have decreased this year compared to 2024:
- 56% Housekeepers (-1%)
- 47% Childcare providers (-8%)
- 47% Teachers (-5%)
- 37% Landscapers and snow removers (-4%)
- 27% Mail carriers (-4%)
- 26% Trash and recycling collectors (-5%)
Bobbi Rebell, a certified financial planner and consumer finance expert at Badcredit.org, says, “Most people do care about these important community members but they are also feeling their own financial stress, anxiety and budget shortfalls.”
The holidays have become about making tough choices to avoid what she calls “spending hangovers.”
While fewer people are tipping overall, those who are tipping haven’t significantly reduced their tips. The median tip for landscapers and snow removers increased from $30 to $50, and for trash collectors from $20 to $25.
The obligation factor
Better service remains the primary reason people tip, with 56% of Americans saying they leave bigger tips when service improves. But 38% admit they often feel obligated to tip regardless of quality of service.
That obligation weighs the heaviest on younger generations: 44% of Gen Zers and 42% of millennials report feeling pressured to tip, compared to just 29% of baby boomers.
As Rebell notes, younger consumers have grown up in a culture where tipping prompts are more prevalent than ever, normalizing expectations even when budgets are tight.
Strategies for your holiday tipping budget
If you want to show appreciation without derailing your finances, consider these approaches:
- Build tips into your total cost calculations. Before hiring any service, factor in the tip when calculating your actual spend. This prevents end-of-year sticker shock and helps you budget more realistically throughout the year.
- Team up with neighbors. There’s no rule saying you have to go it alone. Pool resources with neighbors on your street to share service providers, such as mail carriers or trash collectors. Parents can coordinate to purchase group gifts for teachers, spreading the cost and potentially giving a more meaningful gift.
- Get creative beyond cash. Homemade baked goods, a thoughtful thank-you card, or leaving snacks and drinks for delivery drivers can express genuine gratitude when your budget is running low. As Bankrate’s Ted Rossman notes, a simple gesture can demonstrate appreciation just as effectively.
- Prioritize ruthlessly. If tipping everyone isn’t feasible, focus on the people who truly went above and beyond this year. That exceptional babysitter or the landscaping crew that always shows up when they say they will deserve recognition more than simply defaulting to giving less to all service providers.
Holiday tipping works best when planned rather than reactive. Setting boundaries ahead of time helps you avoid guilt spending while still showing genuine appreciation. Done right, tipping feels intentional rather than stressful, and that matters more than the dollar amount.
If you are looking for ways to save money this holiday season, perhaps use a service like Rocket Money, which automatically finds and cancels unwanted subscriptions, negotiates bills down by up to 20%, and monitors your accounts for hidden fees.
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