Americans have reached their tipping point, and say gratuities have ‘gotten out of control’ — here’s where Dave Ramsey says he draws a firm line

On a recent episode of The Ramsey Show, hosts Dave Ramsey and Jade Warshaw attempted to answer the question: When is it actually appropriate to leave a tip?

When should you tip?

Warshaw advised to always tip in restaurants. “Where you're sitting down, you're placing an order, there's somebody attending to your table … tip between 18 to 20%," she asserted. "I feel like if you can't afford to leave a nice tip, you can’t go."

Ramsey agreed, saying staff are working for tips and often aren't paid well otherwise.

For close-contact services like haircuts or nails, Warshaw recommends starting around 15%. But for quick barista service or grocery delivery? She says it depends on how great the service was, if she knows the person or if they went through a tough time to serve her, like delivering items in the rain.

"For me, tipping falls in the bucket with generosity, so I overdo it," Ramsey admitted, even if the food wasn't that good. "Here's the thing: The kitchen might have screwed up, not the poor waitress."

He typically wants to tip, and leaves $20 on his bed for the maid every day he stays at a hotel, but clarified, "The times that I walk up to the counter and someone spins an iPad at me and I leave a tip [are] precisely zero. I do not tip there, ever." Ramsey feels no guilt about this practice he calls a "manipulation at checkout … it’s nickel-and-diming you to death.”

All in all, the pair lean towards tipping and showing empathy for service workers and what they must deal with at the workplace — a sentiment not entirely reflected in the average American's view.

Tipping fatigue

Driven by inflation, menu price hikes and pressure to tip on basic transactions, tipping expectations are probably fueling exhaustion, resentment, and blown budgets among consumers.