A New Study Says Millennials And Gen Z'ers Are The Worst Tippers, And I'm Shocked

Just 58% of millennials and 56% of Gen Z'ers said they always tip their restaurant server, compared to 88% of Boomers.

A new study from CreditCards.com is calling millennials and Gen Z'ers the worst tipping generations, and I don't even know what to think about this information.

Catherine Mcqueen / Getty Images

The study looked at 2,573 people in the US over the age of 18 in June 2021 and weighted the data to reflect the national population.

The data showed that millennials and Gen Z'ers are the least likely to say they *always* tip at a sit-down restaurant. Just 58% of millennials and 56% of Gen Z'ers said they always tip their restaurant server, compared to 88% of Boomers.

BET+ / Via giphy.com

As someone who's worked in a few restaurants, I think you have no way of knowing how a person will tip (or not tip) based on their age or anything else. But in my experience, I did notice that people from older generations often left smaller tips for good service, while younger generations see 20% as standard. So based on what I've seen, calling millennials and Gen Z the worst tippers feels a little...off to me.

On the one hand, Boomers hold 53% of America's wealth, so from a purely financial point of view, it makes sense that they would be a bit more likely to tip than other generations.

Ariel Skelley / Getty Images

By contrast, millennials own just under 5% of America's wealth. In 1989, when Boomers were a similar age, they owned 21%. 

And when you look at the survey data in terms of income rather than by generation, higher earners report tipping more. People later in their careers earn more on average, so it's probably safe to assume that there were plenty of Boomers surveyed in the study's highest income level.

Of people earning $80,000 a year or more, 82% said they always tip at sit-down restaurants. Of people earning between $40,000 and $80,000, 73% said they always tip at a restaurant, as did 58% of those earning $40,000 or less. 

Interestingly, the study found that when millennials do tip, they're leaving slightly larger amounts than all the other generations. Which makes me think that millennials aren't actually bad tippers; they just don't have as much money.

Vgajic / Getty Images

Millennials tip an average of 21% at sit-down restaurants (compared to 20% for Boomers, Gen X, and Gen Z), 19% for food delivery (compared to 18% for Gen Z and 16% for Gen X and Boomers), and 18% for takeout (compared to 16% for Gen Z and 13% for Gen X and Boomers). 

Additionally, the study found that restaurant servers, hair stylists, and food delivery people were the most likely to receive tips, while people reported tipping less often for baristas and takeout cashiers.

77% of respondents said they always tip restaurant servers, and 63% said they always tip their stylist and their delivery person.

When getting a coffee, 23% of respondents say they always tip their barista and 24% say they never do. And when picking up takeout, only 17% of people said that they always tip.

The study also looked at tipping habits during the pandemic and found that two out of three respondents wanted to do something to help people who've been struggling due to business closures and layoffs.

Medianews Group / MediaNews Group via Getty Images

About 35% of the people surveyed said they plan to tip more, 44% said they're buying from local businesses more, and 13% said they're willing to pay more for services or keep paying for services they aren't really using to keep businesses afloat.

What generation are you from and what are your tipping habits like? Share your thoughts in the comments!

And for more stories about money and life, check out the rest of our personal finance posts.