Mind Your Tipping and Save Thousands Over Your Lifetime

Recently, my husband and I started paying attention to tipping. Having worked in food services, I am sensitive to this topic. We observed our tipping behavior and that of several friends over the course of a few weeks.

One thing we noticed is that many people tend to actually tip higher without realizing what they are doing. Pop quiz: do you tip on the post-tax or pre-tax amount of your bill?  Etiquette dictates that you tip on the pre-tax amount for food and beverage and not the additional amount charged by Uncle Sam (the tax portion), or on additional fee schemes benefiting the establishment or the municipality, such as the Healthy San Francisco tax, or OpenTable’s new $25 per person surge pricing for a prime dinner reservation. On a small meal, this could be a negligible difference; but at higher priced restaurants and for group dinners, this can really add up over the years.

 Tax on this tab, doubled, would equal 18.5%. 

Tax on this tab, doubled, would equal 18.5%. 

Tipping within reason can help you stay on budget and save for your future. One method, if you live in an area with a tax rate of between 7.5% and 9%, or higher, on dining is that you can simply double the tax. That said, if you have a favorite server in a favorite restaurant, it really is up to you!

As an independent Certified Financial Planner™, I can help you save money. Contact me and let’s get started! #talktometuesday #education #Hireaplanner #savingstip #tipping