Ted Rossman, senior analyst for Bankrate.com, talks about when — and when not — to tip. 

<div class="block">Ted Rossman, senior analyst for Bankrate.com, talks about when — and when not — to tip. </div>

Wake Up With Cheddar

Stretching Your Dollar: Tips for Tipping 

Welcome back, friends news and Baker for chat and now to stretching your dollar. Yeah, indeed. And in recent years, tipping has gone pretty digital with on screen prompts for tips becoming the norms at cafe and shops now. So it seems like everywhere you go, there's the debate about the tip creep. Yeah. According to a recent bank rate survey, two thirds of Americans now have a negative view of tipping and the number of people who always tip has declined over the past two years. Joining us now to help navigate this new world of tipping is Ted Rossman, senior analyst with bankrate dot com. Welcome back, Ted. We love having you. Yeah. So we're hearing more and more about these conversations about tipping have the attitudes changed. It clearly seems like from the survey results. It has they have. Yeah. So remember during the pandemic, like 2020 everybody said they're gonna become a better tipper that has not lasted. We're seeing the frequency of tipping go down and we're seeing the amounts go down too. I think a lot of people are annoyed about tip creep at restaurants. For example, only 65% are always tipping. That's 12% points. That so wait. So let's go to that because bank rate survey showed a decline on tipping at sit down restaurants. Why? That is surprising to me and it's young adults that are the worst tippers, believe it or not only 35% of Jen's ear always tip at a sit down restaurant. Only half of millennials. It's about 80% of Gen Xers and boomers. I think some of this has to do with the income. But I think it also goes a bit deeper. I think for some young adults in particular, there's this social justice kind of thing about like tipping is not fair, let's not do it. I would argue though. You're hurting the worker, that's 100% you are. And also when a sit down restaurant, that's probably the most tip friendly place that you should be tied on the other side of it. We've been noticing a lot of these trends now of the on screen tipping habits. What have you sort of noticed from that bugs. A lot of people. Yeah, 30 30% are annoyed about those pre entered tip screens. We see them at the coffee shop, the food truck, my family's going strawberry picking tomorrow. They asked us to tip when we made the reservation and you haven't even gone yet. I thought that was crazy. Or the self checkout machine at Newark airport that asked me to tip. I think that sort of thing is giving tipping a bad name. Yes. All right. So when is the right time then to tip? And how much is appropriate nowadays, I've always been under the assumption that it was always 20% is usually sort of the standard you should go for. I always, one was 15%. I think 20% is a good tip at a restaurant. Although like we said, a lot of people are not tipping nearly enough. Only 44% are typically tipping 20%. But I think we should at a sit down restaurant, I think we should at a place like a hair salon or barber shop. I think food delivery, taxis and ride shares. A lot of people are not about tipping though, only about half, always tip at the hair salon. Only about half tip for food delivery. It's even less than that. About four in 10 for taxis and ride shares. I think those things we should do better, but I don't think you always need to pick or you tip for the, pick your own strawberries or you know, get a simple coffee order. So we have about 40 seconds but people often see unexpected surcharges as a type of tipping creep. Why are we seeing more of them? I think inflation is emboldening businesses. I think they're feeling like their money is tight. They're trying to push more of the burden on customers. I don't like a surcharge though. I think it's important to just be transparent. I agree about what you're charging. Absolutely. Especially with delivery. You have a service fee, a different fee, they all add up and then you tip on top of that and then it adds like 10 15. That's true. All right. Our thanks to Ted Rossman, senior analyst over bank rate dot com. Always good to have you here, Ted. Thank you. Thank you. And coming up, we got the opening bell on Wall Street just a few moments away.