‘Tis the season of giving back — whether it’s in the form of gifts, donations or a thank-you tip to seasonal workers.
Discussions around tipping have sparked debate in recent years as Americans found themselves bewildered to be asked to tip at a self-service checkout. But one thing we can probably all agree on is that those who’ve made our life easier throughout the year deserve a year-end show of appreciation.
In fact, this year, over half of Americans (56%) plan on gifting or tipping their housekeeper and 47% are giving extra to their childcare provider and teacher, respectively, according to a recent Bankrate survey.
Here are some tips on holiday tipping.
How to budget for holiday tipping
It’s the start of December, which is the perfect time to set a limit to how much you want to spend on holiday tips between now and the new year. Start by choosing a total amount that you’re comfortable spending, and then make a list of those you want to tip, starting with the highest priority — or those who’ve really gone the extra mile. You can note how much you tipped each person last year, for reference, and make any tweaks necessary for this year, keeping in mind your total spend goal.
Use a budgeting tool
You can see how your holiday tipping fits into your overall holiday spending, and beyond, with a budgeting app. In an app like Monarch, you can make holiday tips as its own custom category and then input each tip so you track in real time how close you are to reaching your holiday tipping budget.
Monarch Cost
$8.33/month (billed $99.99 annually); $14.99/month (billed monthly) – get 50% off your first year with code CNBC50
Free trial
7-day free trial is available before subscribing
Standout features
Net worth tracker, investment portfolio tracking, goal creation and progress tracking, budgeting and expense tracking
Categorizes your expenses
Yes, but users can modify
Links to accounts
Yes, bank and credit cards, as well as IRAs, 401(k)s, mortgages and loans
Availability
Offered in both the App Store (for iOS) and on Google Play (for Android); web version also offered
Security features
Utilizes industry-leading security practices, according to Monarch’s website
ProsEasy-to-navigate money-tracking dashboard, including a net-worth trackerEasily syncs to your bank, credit cards and other financial accountsUsers can add collaborators for freeSeven-day free trialCons Subscription is pricier than competitorsRecommendations in the “advice” tab are generic
PocketGuard also allows users to track different budgeting categories, and the app is especially helpful when creating a debt payoff plan — a valuable tool if you’re aiming to free yourself of debt as a New Year’s resolution. Users can get a personalized payoff schedule once choosing the snowball or avalanche repayment method, and PocketGuard will prioritize your debt payments based on the payoff strategy to ensure you stay on track.
Information about PocketGuard has been collected independently by CNBC Select and has not been reviewed or provided by PocketGuard prior to publication.
Cost
Basic PocketGuard plan is free, while PocketGuard Premium subscription is $12.99 per month or $74.99 annually. Lifetime membership offer available at a reduced rate.
Standout features
In My Pocket feature uses your income, recurring expenses and savings goals to determine how much you have for everyday spending.
Categorizes your expenses
Yes, but users can customize
Links to accounts
Yes, users can connect accounts through Plaid and Finicity to import data automatically or manually add cash accounts for tracking
Availability
Offered in both the App Store (for iOS) and on Google Play (for Android)
Security features
PocketGuard utilizes bank-level encryption, PINs and biometrics like Touch ID and Face ID
Availability
Offered in both the App Store (for iOS) and on Google Play (for Android)
ProsIncludes bill payment tracker and bill negotiation serviceLifetime membership option offers additional savingsA+ from Better Business Bureau ConsBasic free plan only allows two budget categoriesTransactions may be categorized incorrectlyYou don’t have to use cash
Tips usually mean cold, hard cash, but these days, you can feel free to tip via a money transfer app. Use an app like Cash App, Venmo or Zelle — just ensure that you’re sending money to the correct person with their email address, phone number or username. And, of course, include a sweet, personalized message for the holidays.
Free sponsored account for kids 13 to 17 who are invited by an eligible parent or legal guardian*
Transfer speed
1 to 3 business days, or instant cash-out deposits for a 1.5% fee (25-cent minimum)
Standout features
Teens with Family Accounts can access peer-to-peer transactions and the Cash App Card, and invest in stocks and buy and sell Bitcoin. Parents can monitor activity and control access to features. Cash App Offers automatically discounts purchases from participating retailers.
Links to accounts
Yes, bank accounts and credit cards
AvailabilitySecurity features
Data encryption and fraud detection technology; unique, one-time login codes, two-factor authentication
Cash App is a financial services platform, not a bank. Banking services provided by Cash App’s bank partner(s). Prepaid debit cards issued by Sutton Bank, Member FDIC. See Terms and Conditions.
*To view the eligibility requirements for sponsoring a teen, please visit the Sponsored Accounts section of the Cash App Terms of Service.
ProsFree debit card availableParents can monitor activity, set limits and control featuresTeens can invest in stocksCons3% processing fee if paying with a linked credit cardInstant cash-outs subject to fee of between 0.5% and 1.75%Peer-to-peer transactions may be more difficult to disputeBitcoin and investment balances are not insured by the FDICVenmoCost
No charge for sending money from a linked bank account, debit card or your Venmo account; a 3% fee for sending money using a linked credit card
Transfer speed
Instant transfer to Venmo balance; 1 to 3 business days for direct deposit (free) or instant transfer to your bank account for 1% fee ($10 max)
Standout features
Links to popular apps; social features to interact with your friends’ payments (including stickers and emojis); Venmo debit and credit cards
Links to accounts
Yes, bank and credit cards
Availability
Only available in the U.S. and only compatible with U.S.-based bank accounts and phone numbers; compatible with iOS & Android
Security features
Multi-factor authentication when signing in; QR code readers to make sure you link to the correct user account before you send money
ProsEasy-to-use interface and large base of usersCan link to online merchants and popular apps, including Uber and SeamlessFree Venmo debit card availableVenmo Credit Card earns rewards in your most popular spending categoriesCons3% processing fee when using a linked credit card1% fee for instant cashoutsCan’t cancel sent paymentsZelleCost
Free (but check with your bank to ensure it doesn’t charge an additional fee)
Transfer speed
Instant: transactions typically occur in minutes when the recipient’s email address or U.S. mobile number is already enrolled with Zelle
Standout features
No need to download an extra app; Zelle is already included with most mobile banking apps
Links to accounts
Yes, to U.S. bank accounts
Availability
iOS and Android; must have U.S. bank account linked to an email address or compatible U.S. phone number
Security features
The Zelle app uses authentication and monitoring features to make your payments more secure
ProsFastest money-sending method (when both sender and recipient are signed up)Compatible with hundreds of U.S. banks and credit unionsConsYou can’t link your account to credit card to use as payment methodYou can’t send money to international bank accountsRecipients must sign up for Zelle to receive money (if the recipient doesn’t enroll within 14 days, the payment will expire, and the funds will be returned to your account)How much to tip during the holidays
How much to tip during the holidays really depends on how much you can afford, the cost of the service and your relationship to the provider — someone you’ve known for years is probably getting a higher tip. For a general guide, Fidelity recommends using “up to” amounts, such as up to a week’s pay or up to the cost of one session.
Here are specific guidelines, per Fidelity:
Babysitter/nanny: one typical session/one week’s payDaycare staffer: $25–$75, depending on weekly hoursHairstylist/colorist/barber: cost of one serviceHome health aide/in-home caregiver: one week’s payHousecleaner: cost of one visitLandscaper/groundskeeper (including snow removal): one sessionMassage therapist you visit regularly: one sessionManicurist/pedicurist you visit regularly: one sessionNewspaper delivery person: $10 to $30Personal trainer: one sessionPet sitter/dog walker/groomer: one sessionTrash collectors/sanitation workers: $10 to $30 each
With wallets stretched thin this holiday season — consumers expect to spend on average 5% less on holiday shopping year over year, per PwC’s 2025 Holiday Outlook survey — sticking to these guidelines may not always be feasible. In that case, Nicole Carson, CFP and founder of 2nd Story Wealth Planners, LLC, suggests turning to meaningful alternatives like handwritten notes that can be just as thoughtful.
“People are tipping a bit more this year because the cost of everyday goods has gone up, but many families are still feeling the pressure of inflation,” Carson tells CNBC Select. ” I am seeing a mix of slightly higher tips and thoughtful gestures like handwritten notes or small gifts. The desire to show appreciation is still strong; people are just finding ways to make it meaningful and manageable.”
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