Are Millennials Skimping on Tips?

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Millennial spending habits are an important aspect of the economy, as this demographic already forms about 25% of the workforce in the United States. As we know, millennials are more likely to spend money on experiences or traveling, but are they spending enough when they go out to eat? According to a recent CreditCards.com report, millennials may be skimping when it comes to tipping.

About 10% of millennials say they usually leave nothing as a tip for a server when dining out at a restaurant, compared to just 3% of those who are older. Furthermore, 18% typically decline to leave any amount when presented with pre-entered tipping options in a taxi/Uber/Lyft, at a food truck, at a coffee shop and so on, versus 12% of older adults.

The report goes on to say that the median restaurant tip for a millennial diner is 15%, less than the overall median of 18%. While over half (51%) of those age 38 and older normally tip at least 20% at restaurants, that number falls to a little more than one-third (36%) of millennials. When given a choice of pre-entered tipping options, 14% of millennials pick the lowest one, twice as many as those who are older.

Outside of millennials, a few other demographics are stingy when it comes to tipping, including: men, southerners, westerners, parents with young children, lower earners and the less educated.

Matt Schulz, CreditCards.com senior industry analyst, commented:

Tipping can be tricky and awkward because there’s really no right or wrong answer. However, the truth is that many workers rely on tips to generate a large portion of their income. To them, it’s not just about etiquette. It’s about being able to provide for their families and put food on their own tables.

Schulz added:

Tipping at sit-down restaurants has always been the standard in the U.S., but that’s not necessarily the case in other countries. We’re seeing younger adults tipping less, and even showing a greater preference towards eliminating tipping altogether, even if it means paying more on the bill.