3 Creative Ways to Approach Tipping Without Overspending

As more businesses add tip jars to their counters and use payment systems with tipping capabilities, it can seem like a never-ending cycle of feeling like you need to tip. 

I have an appreciation for tips because, as a former waitress, they helped me pay my bills throughout my college years. However, I can understand how it can start to feel overwhelming when tipping prompts appear at every checkout screen.

Some workers, like bartenders and food delivery app drivers, rely on tips to afford to live. But not every purchase requires a tip, and there's such a thing as overtipping. Before leaving a tip, it's best to consider your personal finances. 

Why? Because if you tip excessively, you may end up overspending beyond your means. 

Here are a few ways to approach tipping to keep your spending in check.  

1. Consider the service being provided before leaving a tip 

Now that many businesses use electronic payment systems like Square, the dreaded "Do you want to leave a tip?" prompt appears more frequently. But just because you're asked to tip doesn't mean it's required or appropriate -- and you shouldn't feel pressured to tip. 

To keep your spending in check, it's a good idea to consider the service provided before leaving a tip. If you had food delivered to your table, received drink refills, and were cared for by a staff member at a restaurant, you should leave a tip. 

You should leave a tip if you're using a convenience service, like getting groceries or takeout delivered to your doorstep or taking trips with ride-hailing drivers. Most of these workers are contractors who receive minimal pay for their services. 

But if you're picking up a cake at a bakery or stopping to get prepared meals at a store and have minimal interaction with an employee at the checkout counter, don't feel obligated to tip. 

Sure, your tip may be appreciated. But when you tip on every occasion, it adds up fast. Taking time to consider the level of service provided before tipping can help you avoid overspending. 

2. Give yourself a spending limit 

Whether going out for a happy hour with friends or having dinner with your sweetie, having a spending limit in mind can be beneficial before you leave your house. Do the math and remember that number when deciding how you spend your money.

By giving yourself a total spending limit, you can ensure you're able to tip without breaking your budget. If you're going out with a spending limit of $60, you'll likely want to keep your spending under $45. That way, you'll have enough money to cover sales tax and a tip. 

3. Save the generous tips for people you know well 

A generous tip is appreciated, especially by workers who rely on tips. But if you're extra generous when tipping every person you meet, you could drain your checking account fast. 

While spending your money as you wish is okay, you may want to prioritize being extra generous with the people you know well -- instead of every stranger you meet. 

For example, your go-to bartender at your local watering hole and your hairdresser both provide you with regular service. You know these workers well, and they will appreciate your extra generosity. Following this strategy can help you avoid overspending when leaving tips. 

Don't stop tipping and always give thanks when others help you. But do consider your finances when making everyday decisions that involve your money, such as tipping.