http://www.marketwatch.com/story/is-the-1-tip-dead-2014-11-07
Dear Moneyologist,
This is a First World problem, but I hope you can help. I am a relatively generous man and like to show my appreciation for good service to staff in restaurants, parking valets, doormen and bartenders, but I am increasingly uncomfortable with giving them a $1 tip. The dollar bill used to be such an easy tip, but inflation has made me feel like a skinflint and yet a five-dollar bill often seems too much. Is the $1 tip dead? When is it no longer okay to tip someone a dollar?
Jordan in New York
Dear Jordan,
Firstly, these are all luxury problems. The Moneyologist is not under any illusion that he is trying to save the world; he just wants to make it a little easier to live in it. You don’t need to apologize for questions about how to spend your money. (But we also encourage donating to important causes. ) It is possible to have enough money to tip the doorman at The Plaza and still be a good person. I have it on very good authority that the Moneyologist won’t judge you for that.
Move over George Washington, Thomas Jefferson may finally enjoy his place in the sun.
I have had the unsettling experience of feeling the cab move away as I had just one foot outside the cab door. And it has left me with the question: “Is this guy angry because I tipped him $1 on a $7 fare?” That’s only 14%, but $7 is a lot for 10 blocks. Though the advent of paying for a cab ride with a credit card has helped New Yorkers become bigger tippers and thus helped the cab drivers too. People tend to tip the middle option when faced with a 20%, 25% or 30% tip, which has led to a 10% tipping increase on $15 cab fares with digital tipping in New York.
Also see: Should the man always pick up the check?
Moneyologist: Is the $1 tip dead?
What's the new etiquette for tipping with dollar bills? Moneyologist Quentin Fottrell discusses who to tip and how much.
Only on rare occasions is a one dollar tip generous: 50 cents in a jar at Starbucks seems measly and giving $1 is too much, especially if you drink as much coffee as I do. That’s why Starbucks cleverly introduced tipping on iPads. The company knows that tapping a percentage on a screen relieves us of this awkward social custom and we don’t go to Starbucks to feel awkward. Leaving $1 for a beer is okay, but you’re stretching it for a $14 cocktail (even if it’s your umpteenth drink and you’re starting to see double).
See also: How much should I spend on a wedding gift?
The dollar tip is on the way out. And word is spreading: I recently heard tell of a friend of a friend of a friend — it’s still true, promise — who asks his bank teller for $2 bills so he can give them out as tips. (I should have asked if he also tips the teller.) He’s in good company. New Yorkers are the most generous tippers in the U.S., according to a survey released last year by a coupon code company of more than 2,300 Americans: We tip more than 20% on average when we eat in restaurants. Diners in Arkansas were the worst, tipping only 10%.
I asked Lizzie Post, co-host of the Awesome Etiquette Podcast on the Infinite Guest Network, and great-great-granddaughter of Emily Post about this. “A dollar just isn’t a dollar anymore,” she says. “There are very few places left for a $1 tip.” The Emily Post Institute recommends tipping a coat room attendant $2 for the first coat and $1 thereafter; and the same amount when an airport sky cap, doorman, grocery store bagger or bell boy helps you with bags. A car valet gets $2 in smaller cities and $5 in bigger cities.
This is all good news for the $2 bill, of course. Move over George Washington, Thomas Jefferson may finally enjoy his place in the sun.