Holiday Tipping Etiquette

Although the economy is recovering, consumers may still feel pressured to tip like it's the boom times. Smart Money Magazine offers a comprehensive tipping guide to cover everyone on your list, plus ideas for what to give them - anything from cold hard cash to chocolate chip cookies. Kelli Grant from the magazine had these tips:

Do tip.
Holiday tips are meant to acknowledge the people who helped you throughout the year. You shouldn't go into debt tipping everyone, but unless your circumstances are dire, it's pretty stingy to not tip at all. If you're cutting back on expenses this year, plan to be creative about who you give to and how much.

Crunch your holiday budget
Ideally, you factored in tips when you were planning out the rest of your holiday spending. If not, don't guess. Figure out how much money you have left in your budget, and which expenses you still have to take care of. That will give you an idea of how generous you can be.

Focus on caregivers
Consumers on a tight budget should focus their tipping on people who care for them and their family. They are the most important people to thank. Regular babysitters should get the equivalent to one night's pay, dog walkers and live-in nannies up to a week's pay. Caretakers for older adults should get a week to one month's pay.

Create a gift list
Some people, including teachers, post office workers cannot accept cash - but a small gift is appropriate. Etiquette experts say it's also OK to give gifts instead of cash to your building superintendent, doorman, personal trainer and hairstylist.

Pick And Choose
If you can't give cash to everyone on your tip list, save it for those you know are having a tough time financially. It's a more meaningful gesture. Some alternatives to cash are wine, champagne, homemade baked goods.

Say Thanks
With every tip or gift, include a handwritten note expressing your gratitude. It is the thought that counts.

For more tipping and financial advice, check out Smart Money Magazine or visit www.smartmoney.com.