– Personal Finance Expert Suze Orman Weighs In on Care.com’s 2015
Holiday Tipping Survey –
WALTHAM, Mass.–(BUSINESS WIRE)–‘Tis the season to be tipping! Care.com
(NYSE: CRCM), the world’s largest online destination for finding and
managing family care, today revealed findings from its 2015 Holiday
Tipping Survey, noting that 70% of families will tip this holiday
season, and 18% plan to tip more than in the previous year. With 41% of
families budgeting for holiday tips this year, and one in five families
estimating to spend more than $250 in holiday tips, Care.com asked
personal finance expert, Suze Orman, to weigh-in on savings trends and
how families can navigate the holiday season without sinking into debt.
“My two favorite findings from the Holiday Tipping Survey are that
41% of people surveyed are budgeting ahead for tips, and that almost all
of the respondents are prioritizing people with whom they have
long-term, meaningful relationships, ” said personal finance expert
Suze Orman. “By planning, families can get through the holiday season
without putting themselves in a risky financial situation, and by
prioritizing whom they tip, they’re not only sticking with their budgets
but also sticking to the true spirit of the season.”
Continues Orman, “The goal is not to bust your budget in the last
weeks of the year and start 2016 in debt. I was pleased to see
families getting creative and resourceful with a limited budget by using
gift cards, especially those with rewards programs, and through the
personal touch of homemade gifts.”
Key findings from the Care.com
2015 Holiday Tipping Survey and a “Holiday Tipping Dos and Don’ts Guide”
Care.com 2015 Holiday Tipping Survey Highlights
Who is Tipping in 2015
- People who plan to holiday tip: 70%
- Who budgets: 41% of parents budget for holiday tips
How much people spend: 1 in 5 families spend more than $250 in
holiday tips; 34% budget between $101-$250; 8% spend more than $400
Those in the giving spirit: 60% plan to tip the same amount as
last year; 18% will tip more generously than in 2014
How people tip: 30% tip in cash only; 60% prefer a mix of cash
and physical gifts
Gift Cards on the Rise: 77% use gift cards/certificates as
holiday tips (up from 45% in 2014!)
Why People Tip (And Don’t)
Why people tip: 85% tip to say thank you for a job well done;
21% tip because it is expected
Tipping out of fear: 11% tip out of fear they won’t get good
service the following year
- Those not tipping this year: 30%
Why skip the tip?: 41% cannot afford holiday tips; 29% forget
to tip; 34% believe holiday tips are not necessary
Who Takes Priority
How many people they tip: 42% tip up to 3 people during the
Prioritizing caregivers: 60% prioritize tips for babysitters,
nannies, daycare workers, etc.
Focusing on their children: 42% tip those who regularly
interact with their children such as coaches, tutors, teachers, etc.
Personal relationships: 47% tip personal care contacts such as
hairstylists, manicurists, personal trainers, etc.
- Home care: 39% will tip those who handle home care needs
2015 Holiday Tipping Trends
Tips for pet care: 14% are tipping dog walkers, cat sitters and
other pet care providers
Rewards programs: of those skipping cash, 77% use gift
cards/certificates as tips and often receive rewards and incentives
for doing so
- Get cooking: 45% will gift homemade food – no fruitcake please
- Smart or taboo: 34% admit they have re-gifted for holiday tips
DOS AND DON’TS OF HOLIDAY TIPPING
Do Have a Tipping Action Plan: Be like the 41% of parents
surveyed and budget for holiday tips. Decide how much money you can use
for tips in total. Then make a list of the number of people you’d like
to tip this year and simply divvy it up. Be honest with yourself and
don’t exceed your budget.
Do Make Things Personal: Include a hand-written, sincere thank
you. Share something specific they did this year for you or your family
that made a difference in your life.
Do Keep a Tipping Diary: Each year, keep a list of those you
tipped and how much. You don’t have to do the same thing every year, but
it helps to have a gauge. Keeping a diary will also help you avoid
missing anyone important!
Do Have a Tipping Timeline: According to our Care.com survey,
close to half of families (46%) share their holiday tips in early
December. If you know your budget is going to be especially tight in
December, start setting aside money earlier in the season. Some families
(5%) save holiday tipping for the New Year, but try and remember that
some professionals rely on holiday tips for their own holiday budgets.
Do Remember it’s Not One Size Fits All: Different families,
different priorities, different budgets. Prioritize the people most
important in your life and see how far your budget takes you. Be
comfortable making small adjustments to make the budget work.
Do Get Creative and Mix Things Up: Cash may be preferred,
but it is not the only way to say thank you. 57% of parents surveyed
said they have felt guilty about not giving someone a holiday tip. Avoid
the guilt, think about each person, and get creative with your budget.
Consider gift cards – many offer reward programs for buyers—and handmade
gifts. And get the kids involved with cards, holiday arts and crafts,
and baked goods!
Don’t Exceed What You Can Afford: Tipping is important, but it’s
not something that should put you in debt. Give what you can and no
more. Remember that running up your credit card bill to account for tips
means that you’ll be paying more over a longer period of time.
Don’t Feel Like a Grinch: Can’t afford to exceed what you gave
your doorman last year? You’re not a holiday scrooge. Add a thoughtful
hand-written thank you in your card this year (and every year for that
matter!) and add a box of from scratch cookies to show how much you
appreciate his hard work.
Don’t Re-gift, Unless…: Re-gifting is generally taboo, but there
are exceptions. Not a coffee drinker and find yourself with a $20
Starbucks gift card? There is no crime in giving it to your latte-loving
babysitter as a special holiday thank you.
Don’t Forget What Holiday Tipping is all About: Holiday tipping
is part of the holiday spirit and is meant to show appreciation for a
job well done. While cash is definitely the most popular tip to receive,
those important people in your life will be grateful for the recognition
for their hard work.
for more information on the Care.com Holiday Tipping Survey.
Suze Orman is America’s most recognized expert on personal finance.
She is a two-time Emmy Award-winning television host, New York Times
bestselling author, and one of the top motivational speakers in the
Suze Orman is an early investor in Care.com. She was not
compensated for providing the commentary on the Care.com Holiday Tipping
Survey. For more money tips from Suze, visit SuzeOrman.com.
in 2007, Care.com (NYSE: CRCM) has been committed to solving the complex
care challenges that impact families, caregivers, employers, and care
service companies. Today,Care.com is the world’s largest online
destination for finding and managing family care, with 17.8 million
member consumers* across 16 countries, including the US, UK, Canada and
parts of Western Europe, and approximately half a million employees of
corporate clients having access to our services. Spanning child care to
senior care, pet care, housekeeping and more, Care.com provides a
sweeping array of services for families and caregivers to find, manage
and pay for care or find employment. These include: a comprehensive
suite of safety tools and resources members may use to help make more
informed hiring decisions – such as third-party background check
services, monitored messaging, and tips on hiring best practices; easy
ways for caregivers to be paid online or via mobile app; and household
payroll and tax services provided by Care.com HomePay. Care.com builds
employers customized benefits packages covering child care, back up care
and senior care consulting services through its Global Workplace
Solutions, and serves care businesses with marketing and recruiting
support. To further connect families, Care.com has expanded its consumer
service with its 2013 acquisition of Big Tent, a community platform.
Headquartered in Waltham, Massachusetts, Care.com has offices
in Berlin, Austin, New York City and Silicon Valley.
*As of September 2015
Laurie Coghlan, 609-238-6388