1 00:00:00,000 --> 00:00:00,660 Ralph: Hey listeners. 2 00:00:00,660 --> 00:00:03,929 Do you ever feel like tipping has gotten completely out of control these days? 3 00:00:03,929 --> 00:00:06,930 Like everywhere you go, you're expected to add 15. 4 00:00:07,199 --> 00:00:10,530 20 or even a 25% tip on top of your bill. 5 00:00:10,663 --> 00:00:15,133 It seems like tip creep is real and TIPFLATION is running rampant. 6 00:00:15,163 --> 00:00:16,809 that's what we're going to talk about on today's show. 7 00:00:47,040 --> 00:00:49,410 Welcome to our wacky and wild Wednesday show. 8 00:00:49,440 --> 00:00:50,820 I'm so glad you chose to join us. 9 00:00:50,820 --> 00:00:53,730 I just want to thank you for listening and supporting the program. 10 00:00:54,120 --> 00:00:55,320 Well speaking of tipping. 11 00:00:55,710 --> 00:00:57,420 I had a bit of an issue this morning. 12 00:00:57,810 --> 00:01:00,060 Every morning I get up and do my morning exercise. 13 00:01:00,060 --> 00:01:00,300 I do. 14 00:01:00,300 --> 00:01:01,980 What's called an inversion table. 15 00:01:02,070 --> 00:01:03,060 Helps with my back. 16 00:01:03,060 --> 00:01:06,510 Well, this morning I didn't check the strap and my inversion table. 17 00:01:06,510 --> 00:01:08,790 Went almost completely vertical. 18 00:01:09,240 --> 00:01:13,590 And needless to say it was a little bit of a scary effort, but I was able to right myself. 19 00:01:13,590 --> 00:01:20,400 So coming to you this morning from the Estep Farm at the Saggio Accounting studio . I've got myself back up in the correct direction. 20 00:01:20,580 --> 00:01:28,020 So let me put my podcaster hat and put down those overalls and adding machine, and let's get into some financial wisdom from a Christian perspective. 21 00:01:28,440 --> 00:01:32,730 In today's episode, as I talked about, we're going to dive into the topic of out of control tipping. 22 00:01:33,240 --> 00:01:36,750 We're going to talk about what's causing it, how it impacts your finances. 23 00:01:36,750 --> 00:01:41,160 And most importantly, what you can do about it as a savvy Christian consumer 24 00:01:41,550 --> 00:01:44,730 buckle up, because this is sure to be an interesting conversation. 25 00:01:45,170 --> 00:01:49,460 And before we get started, I want to remind you to subscribe to the show and join our email list. 26 00:01:49,700 --> 00:01:53,390 You do that at askralphpodcast.com . So you don't miss tomorrow's show. 27 00:01:53,780 --> 00:01:55,520 Tomorrow, we're going to be talking about something. 28 00:01:55,520 --> 00:02:01,220 A listener asked me the other day, and that is how long should I keep tax and other important records Ralph?. 29 00:02:01,400 --> 00:02:05,930 So tomorrow's episode is going to be all about what records to keep and how long you should keep them. 30 00:02:06,350 --> 00:02:11,690 So let's start with today's Bible verse Proverbs chapter 11, verse one says dishonest scales. 31 00:02:12,020 --> 00:02:16,340 Are an abomination to the Lord, but an accurate weight is his delight. 32 00:02:16,850 --> 00:02:25,370 as Christians, God calls us to live with integrity and honesty in all areas of our life, including how we handle money and business transactions. 33 00:02:25,640 --> 00:02:29,750 So when tipping gets out of hand, it can start to feel dishonest and become a burden. 34 00:02:30,230 --> 00:02:36,650 So today we're going to explore whether tip creep has gone too far and how we can respond to it in a way that honors God. 35 00:02:36,650 --> 00:02:38,060 So that's what we're going to talk about on today's show. 36 00:02:38,450 --> 00:02:41,570 So let's first define what I use the word tip inflation. 37 00:02:42,190 --> 00:02:46,610 tip inflation or tip creep refers to the phenomenon of tip steadily increasing over time. 38 00:02:46,880 --> 00:02:49,190 I see this every time I go out anywhere. 39 00:02:49,430 --> 00:02:56,240 What used to be considered a standard 15% restaurant tip is now creeping towards 20 and 25% as a new normal. 40 00:02:56,600 --> 00:03:03,980 The other night, my wife and I were out to dinner and we noticed on the screen, we want to pay it actually started at 22% and went up to 30% 41 00:03:04,340 --> 00:03:06,410 and tipping is expanding too. 42 00:03:06,740 --> 00:03:09,926 We're now prompted to be tipping on carry out orders. 43 00:03:10,226 --> 00:03:14,006 Coffee shops, Airbnbs ride shares and even more places. 44 00:03:14,306 --> 00:03:18,026 I've even seen some technicians come out to my house or office to do work. 45 00:03:18,206 --> 00:03:21,146 And they had a place to put a tip line when they took my credit card. 46 00:03:21,446 --> 00:03:22,466 Now don't get me wrong. 47 00:03:22,766 --> 00:03:24,476 I'm not against tipping in general. 48 00:03:24,656 --> 00:03:25,706 My son's a barber. 49 00:03:25,706 --> 00:03:26,756 He lives on tips. 50 00:03:27,146 --> 00:03:31,796 I think choosing to tip can be a great way to honor hard work and express gratitude. 51 00:03:32,336 --> 00:03:33,986 But I want to highlight three concerns. 52 00:03:33,986 --> 00:03:35,576 I see with tip inflation. 53 00:03:35,666 --> 00:03:37,466 And first this one is the big one. 54 00:03:37,526 --> 00:03:38,726 It's unpredictable. 55 00:03:38,776 --> 00:03:42,826 I never know what the tip amount is supposed to be, and it creates stress and confusion. 56 00:03:43,306 --> 00:03:47,866 I hate fumbling with the receipt and calculator after a meal, trying to figure out an appropriate tip amount. 57 00:03:48,286 --> 00:03:50,326 And secondarily it's involuntary. 58 00:03:50,836 --> 00:04:00,016 Tipping used to feel like a bonus for great service, but now it feels more like a fee required to pay regardless of service quality, and psychologically that changes things. 59 00:04:00,376 --> 00:04:03,226 If it's not voluntary, if it's not something you do out of joy. 60 00:04:03,526 --> 00:04:06,406 To reward a good server or reward a good service. 61 00:04:06,826 --> 00:04:09,826 I'm telling you folks, it feels very involuntary. 62 00:04:10,276 --> 00:04:12,406 And third it's unfair servers. 63 00:04:12,406 --> 00:04:15,796 Shouldn't have to rely on whims of customers to earn fair wages. 64 00:04:15,796 --> 00:04:16,636 That's just the truth. 65 00:04:16,936 --> 00:04:20,836 And as a customer, I don't think it's my job to directly supplement a server's income. 66 00:04:21,166 --> 00:04:22,696 That should be on the employer. 67 00:04:23,056 --> 00:04:25,126 My wife and I went to Germany this past year. 68 00:04:25,126 --> 00:04:26,446 And it was a funny situation. 69 00:04:26,636 --> 00:04:30,656 one of the first nights we went to a restaurant, happened to be an American style restaurant. 70 00:04:30,656 --> 00:04:34,706 We got to the end of the meal and they presented the bill and they said, okay, here's your bill? 71 00:04:34,706 --> 00:04:35,816 And I gave him the credit card. 72 00:04:36,176 --> 00:04:37,346 And then they came back out. 73 00:04:37,676 --> 00:04:39,026 And I put the tip on there. 74 00:04:39,026 --> 00:04:41,246 Like I would usually put, and they didn't say a word to me. 75 00:04:41,246 --> 00:04:45,326 the next night we went to an Italian restaurant there in Munich. 76 00:04:45,656 --> 00:04:48,026 And when I went to pay the bill, the owner said, oh, no, no, no, no, no. 77 00:04:48,056 --> 00:04:49,376 We don't tip here in this country. 78 00:04:49,676 --> 00:04:51,986 If you want to give them 20 or 30 cents, that's fine. 79 00:04:51,986 --> 00:04:53,876 He says, well, we pay a fair wage. 80 00:04:53,876 --> 00:04:55,556 So it was interesting. 81 00:04:56,246 --> 00:04:59,906 In light of these concerns, let's talk about what's driving tip creep. 82 00:05:00,446 --> 00:05:02,906 And I think there seem to be a few key factors. 83 00:05:02,966 --> 00:05:04,076 And the first one is this. 84 00:05:04,556 --> 00:05:11,576 There is a genuine desire to be generous, especially after difficulty during those pandemic years for many service industry workers. 85 00:05:11,936 --> 00:05:13,556 That's very understandable. 86 00:05:13,826 --> 00:05:18,236 A lot of people had tough times during the pandemic in the service industry. 87 00:05:18,506 --> 00:05:20,156 And second it's peer pressure. 88 00:05:20,366 --> 00:05:24,536 No one wants to be viewed as cheaper stingy by tipping, less than what's now considered normal. 89 00:05:24,746 --> 00:05:28,826 The problem is what's normal now, and that peer pressure is really strong 90 00:05:28,826 --> 00:05:29,426 and third. 91 00:05:29,876 --> 00:05:33,716 Companies offloading labor cost on the consumers under the guise of tipping. 92 00:05:34,256 --> 00:05:35,246 What do I mean by that? 93 00:05:35,246 --> 00:05:38,996 for example, some coffee shops now ask for tips on simple orders. 94 00:05:38,996 --> 00:05:42,266 When historically baristas were paid a standard hourly wage. 95 00:05:42,836 --> 00:05:44,516 That's a thing that's been a change. 96 00:05:44,906 --> 00:05:51,056 And we, as the consumers are having those offloaded labor costs put on the us. 97 00:05:51,476 --> 00:05:55,316 So the question is what can we, as Christians do in response? 98 00:05:55,366 --> 00:05:59,896 How can we walk this fine line between generosity and enabling unfair practices? 99 00:06:00,116 --> 00:06:01,376 I've got a few suggestions. 100 00:06:01,796 --> 00:06:03,276 These are my ideas of what you can do. 101 00:06:03,276 --> 00:06:06,626 And number one is educate yourself on reasonable tipping norms. 102 00:06:06,956 --> 00:06:09,986 Instead of blindly following ever increasing trends. 103 00:06:10,496 --> 00:06:14,336 There are resources out there like Emily post.com that can provide tipping guidelines. 104 00:06:14,606 --> 00:06:20,306 Now, again, some of these are really subjective because it seems to be changing on a daily basis. 105 00:06:20,336 --> 00:06:25,676 Number two, consider tipping a percentage based on the server's wage, not just the total bill. 106 00:06:26,006 --> 00:06:29,486 Servers in some states with higher minimum wages may not rely as much on tips. 107 00:06:29,616 --> 00:06:37,146 one of the things we've seen in the economy is the people in California, their minimum wage, I think for restaurants is now almost $20 an hour. 108 00:06:37,386 --> 00:06:38,736 So do they really need tips? 109 00:06:38,736 --> 00:06:45,036 And number three, if you can have gracious conversations with restaurant managers about fair compensation for staff. 110 00:06:45,246 --> 00:06:47,436 So the burden isn't solely on customers. 111 00:06:47,436 --> 00:06:49,146 Now this might be a bit of a big ask. 112 00:06:49,506 --> 00:06:51,876 But I think it's a reasonable conversation to have 113 00:06:51,876 --> 00:06:52,576 And number four. 114 00:06:53,136 --> 00:06:55,596 Avoid peer pressure to overtip. 115 00:06:55,866 --> 00:07:02,856 Like I said, when we were presented that bill at the restaurant the other night, and I started off with 22% and then it went to 25 and 30, then it said other. 116 00:07:03,196 --> 00:07:10,936 the peer pressure was pretty strong on that, that they want you to hit at least at 22%, but you got to be willing to go against the grain of tip creep, inflation. 117 00:07:11,146 --> 00:07:12,076 It's just something you need to do. 118 00:07:12,076 --> 00:07:17,836 And number five, when possible patronize, no tipping establishments that build fair wages into their business model. 119 00:07:18,226 --> 00:07:20,596 There are some restaurants out there that actually do this. 120 00:07:20,596 --> 00:07:24,946 Like I said, we found that in Germany when we were traveling in Munich, And in Berlin. 121 00:07:25,216 --> 00:07:30,346 Number six, contact your legislators in support of measures that require employers to pay reasonable wages. 122 00:07:30,706 --> 00:07:33,916 This makes tips truly optional again, and that's what they should be. 123 00:07:34,336 --> 00:07:36,676 Now on a side note, some of you may be thinking. 124 00:07:36,946 --> 00:07:40,996 But what if I don't tip the new higher amounts and get bad service next time? 125 00:07:40,996 --> 00:07:42,016 That's a legitimate question. 126 00:07:42,016 --> 00:07:53,686 Actually, here in Middletown Delaware, there was a story on Facebook a month or two ago about a server who actually chased a customer out the door and into the parking lot, complaining about how badly they tipped on that particular meal. 127 00:07:53,686 --> 00:07:55,096 Now, I don't think that's the right way to handle it. 128 00:07:55,516 --> 00:07:57,436 So this concern is understandable. 129 00:07:57,646 --> 00:08:02,086 So here's a few thoughts about how to avoid that stigma. 130 00:08:02,446 --> 00:08:07,246 First, remember this, your worth and identity are in Christ, not the opinion of others. 131 00:08:07,396 --> 00:08:09,076 So you got to stand confidently in that. 132 00:08:09,106 --> 00:08:16,546 If you feel like you've tipped a fair amount based on what you received, then stand by that your worth is not identified by them, but it's identified in Christ. 133 00:08:16,546 --> 00:08:19,786 And secondly, graciously, explain your position if asked. 134 00:08:20,146 --> 00:08:26,326 If I was chased down in a parking lot by a server who thought I didn't tip them enough, that I would have a calm discussion with them. 135 00:08:26,776 --> 00:08:30,076 Most servers will understand your desire, not to inflate tipping norms. 136 00:08:30,076 --> 00:08:38,236 And third, if this service is chronically bad in an establishment, then yes, it's fair to not go back or tip at those higher amounts. 137 00:08:38,446 --> 00:08:42,556 If the service is terrible, no one is making you give a bad tip. 138 00:08:42,946 --> 00:08:46,996 But try to discern what's occasional bad service versus systemic issues. 139 00:08:46,996 --> 00:08:54,686 For example, if you go into a restaurant on a Friday night and it's busy in that restaurant, then you have to expect that service might be a little diminished. 140 00:08:54,956 --> 00:08:57,356 But if you go on a Tuesday night, maybe it'll be better. 141 00:08:57,956 --> 00:09:02,906 My hope is these tips empower you to make informed Christ centered decisions when tipping and don't tip over. 142 00:09:02,906 --> 00:09:03,476 Like I did. 143 00:09:03,836 --> 00:09:07,676 We don't need to just go along with tip inflation or react self righteously. 144 00:09:08,156 --> 00:09:16,886 As believers we can thoughtfully take the middle road, generously giving what we can while also advocating for fair ethical business practices, 145 00:09:17,326 --> 00:09:17,956 In closing. 146 00:09:18,506 --> 00:09:22,046 I got a question for you, which of these actions steps resonates most with you today? 147 00:09:22,286 --> 00:09:24,506 How may God be calling you to apply it. 148 00:09:24,806 --> 00:09:30,896 Please visit our website at askralphpodcast.com to share your thoughts and start a discussion and learn more. 149 00:09:31,376 --> 00:09:32,306 I truly pray. 150 00:09:32,306 --> 00:09:34,046 This discussion has been insightful for you. 151 00:09:34,346 --> 00:09:40,106 Tipping may feel trivial sometimes, but how we handle money reveals much about our hearts. 152 00:09:40,436 --> 00:09:46,406 My prayers that like Christ, we learn to use resources, generously and fairly for the glory of God alone. 153 00:09:47,006 --> 00:09:50,336 Now, before we wrap up, I want to remind all of our listeners to visit our podcast page. 154 00:09:50,336 --> 00:09:56,036 You do that, as I said, at askralphpodcast.com there you can leave a review, share your thoughts, or even send a message. 155 00:09:56,186 --> 00:09:58,506 Tell us about those tipping experience that your seeing. 156 00:09:58,736 --> 00:10:01,016 And maybe we'll have another review of those things on the show. 157 00:10:01,286 --> 00:10:07,256 While you're on the website, make sure you join our email list so we can send you our daily email with what's going on with the show. 158 00:10:07,616 --> 00:10:11,786 You can also schedule a consultation if you've got any specific financial topics to discuss. 159 00:10:12,036 --> 00:10:14,886 If you know, someone who also feels it, tips have gotten out of control. 160 00:10:14,886 --> 00:10:18,096 Do me a favor and share this episode with them and share the program. 161 00:10:18,306 --> 00:10:21,066 Maybe they too have some opinions that we can share with others. 162 00:10:21,336 --> 00:10:22,810 So let's do a bit of a recap. 163 00:10:23,050 --> 00:10:28,660 In this episode, we dove into the timely topic of out of control tipping practices and what I call TIPFLATION. 164 00:10:29,050 --> 00:10:36,850 We defined tip inflation and looked at three concerns, the unpredictability, the involuntariness and unfairness that can arise. 165 00:10:37,030 --> 00:10:40,060 We explored factors driving the trend, like genuine generosity. 166 00:10:40,570 --> 00:10:46,480 Peer pressure And companies unfairly offloading labor costs to consumers under the guise of tipping. 167 00:10:47,080 --> 00:10:52,150 Most importantly, though, we offered some practical tips for Christians to navigate these challenges, with wisdom. 168 00:10:52,510 --> 00:10:54,010 With discernment and grace. 169 00:10:54,430 --> 00:11:00,550 Things like educating ourselves on reasonable norms, tipping based on a server's wage, Giving fair wages ourselves. 170 00:11:00,550 --> 00:11:12,220 as business owners and advocating for positive change, our faith calls us to be generous and ethical in all areas of our life, including finances and when it comes to tipping, we can strike that important balance. 171 00:11:12,490 --> 00:11:14,920 I hope this discussion has equipped you to do just that. 172 00:11:15,320 --> 00:11:21,380 please visit again, our podcast site that's at askralphpodcast.com to continue the conversation and get more savvy tips. 173 00:11:21,380 --> 00:11:26,750 And as I always say, stay financially savvy, stay wise, and God bless you today.