How you can be generous with your holiday tipping without busting the budget

Service workers help to make our lives easier throughout the year – whether it is by keeping our lawns immaculate or through babysitting.

The holidays are an ideal time to show gratitude for the work they do throughout the year.

But how much do you tip service workers during the holidays, and whom should you prioritise? Etiquette experts have answers to these questions and more.

If you need a hierarchy of some sort, consider starting with anyone who assists you within your home, says Thomas Farley, an etiquette expert in Manhattan. That could include a housekeeper, live-in aide or au pair, he says. Then, you can prioritise people who offer services outside your home.

“Keep a spreadsheet. Keep some sort of a document that allows you to make sure you don’t neglect anyone who really provided you good service throughout the year,” he says.

The next important question is how much you should tip. It can be difficult to decide on the right amount to tip someone who has been helpful on a continuing basis.

Diane Gottsman, a modern manners and etiquette expert, suggests tipping the cost of one service – be it a hairstyle or cleaning service. For example, for a nanny, it would be one week’s pay.

If that is not possible because of budget constraints, Ms Gottsman says to use other variables to determine how much to tip.

“You base [it] on your budget, your comfort level, the relationship that you have with that person and the service they provide,” she says.

If you find you have a tight budget this year, you may end up giving a smaller tip than you did last holiday season.

Mr Farley says in this scenario, you can consider tipping half of what you tipped the year before.

The next question is, how do you give service workers their holiday tips?

Ideally, a holiday tip should be in the form of cash or a cheque with a sentimental touch, Ms Gottsman says.

“Not only are you giving them the money, you’re also inserting it in a card and with a heartfelt message,” she says. If cash is not an option, consider using other payment options.

When in doubt, ask them if they have a preference. It is possible that some may not have access to money transfer and payment apps.

Tipping may feel stressful when your finances are spread thin. Before giving out holiday tips, reassess how much disposable income you have.

To figure out your disposable income, use a budgeting app or spreadsheet. After subtracting your committed expenses from your take-home income, you will have your disposable income.

Decide how much of that leftover cash you want to put towards holiday tips.

Keeping track of your tipping can help you avoid overspending, so consider creating a holiday tip budget.

You may put your designated tipping money in a specific account or in envelopes. By getting organised, you can be kind to the people who do work for you and be kind to your finances, too.

As Ms Gottsman says, “I think that’s important to be respectful of your own budget”.

If you can’t afford a cash tip, consider alternatives such as an inexpensive gift or a thoughtful gesture that doesn’t cost anything.

Ms Gottsman says you could get the workers in your life something thoughtful such as a gift card for something they like, herbs from your garden or a bottle of home-infused olive oil.

You can also give a present you have not used if you think the person would appreciate it. However, be honest and let them know you are giving them a gift you received, Ms Gottsman says.

No matter what you give, tipping can be a thoughtful thing to do, especially during the holidays.

“So, it’s at the end of the year where we provide that additional thank you for not just what they did for us around Christmas, or the month of December, but rather how they facilitated our lives throughout the year and made our lives that much more meaningful, enjoyable, and allowed us to focus on other things while they did what they do best,” Mr Farley says.