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11/02/2009 9:50 PM

Money Matters: Holiday Tipping Dips

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The season of giving is right around the corner, but the giving may be a little less this year especially when it comes to tipping.  According to Consumer Reports, tipping was down during the 2008 holidays, a trend that's expected to continue this year.

Julia Kramer has been grooming dogs for years, but she's noticed that since the recession started, it's one area pet owners have cut back on.

"We've noticed people coming in, extending how long they're going between grooming. Instead of every six weeks, extending it sometimes to eight weeks, 10, even 16, depending on what their payroll can handle and what they can do,"  Kramer said.

On top of that, tipping is going to the dogs.

"We have noticed a difference with tipping being down the last few years. We've noticed at the grooming salon and also at the boarding resort," Kramer said.

As people see their incomes drop in the recession, tipping can be more of a challenge than ever.

"It's a little down from the year before because the economy is down and hurting my business. I don't have as much money to give," Kevin Yopp said.

In fact, according to a Consumer Reports survey conducted last month, 26 percent of Americans who usually tip or give a gift to a service provider will spend less this holiday season than last.

Consumer Reports found the average tip valued between $10 to $40 per service provider. Now that they're dropping, it doesn't mean people stop giving altogether.

"I'm giving them the same tip I've always given them. As much as we're suffering, that's their job, that's what they're based on. If 15 percent is what they're supposed to get, that's what I give them," Rozhyer Aware said.

Kramer says people often don't know who they're supposed to tip.

"Do we expect it? We don't expect it.  We're flattered when we get it," Kramer said.

House cleaners usually get tipped the most, followed by hairdressers, manicurists, newspaper carriers, pet care providers, teachers, mail carriers, lawn care crews and garbage collectors.

Consumer Reports Tipping Survey




Angela Kennecke
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