Tips on the rise - MoneySense

Tips on the rise

The new normal when it comes restaurant gratuities, hopelessly indebted Canadians and more.

  • Is 18% the new 15% when it comes to tipping at restaurants? Well maybe. According to U.S. research, the standard tip is now 18%. Still, Canadians Business’ resident expert on just about everything, McArdle, says 15% is still perfectly acceptable for good service though 20% is not uncommon for exceptional staff. Here’s how much to tip bar staff, maitre d’s and baristas.
  • Nearly a full quarter of Canadians with debt aren’t sure when they’ll be able to pay it off  if ever, according to a new poll for CIBC. While Canadians 65 and over were among the most likely to say they were debt free (42%) in prior CIBC polls, those with debt in this age group were among the most likely to feel they would never pay it off completely. In contrast, younger Canadians were more optimistic they would get a handle on debt over time, with only 7% aged 18-34) saying they would hold debt for life.” Canadians 65 and over are more likely to be working with a fixed income, which can make debt repayment more challenging,” said CIBC’s Christina Kramer. “The key is setting smaller goals and then working towards them, since every dollar you reduce in debt also reduces interest costs, and helps your cash flow.”
  • A new BMO report has found that 64% of adult children with parents who are at least 60 years of age have had at least one conversation with their parents about their legacy goals and estate planning. Only one-third however characterized these conversations as “detailed.” “Telling a child that a will and power of attorney have been prepared, and maybe even letting them know some of the plans for managing and distributing assets, is a good start – but it’s not a detailed discussion,” said BMO’s Chris Buttigieg. “Make sure you have comprehensive estate planning conversations prior to going to lawyers and accountants to gain an understanding of what is important to your heirs. Though they may not necessarily agree on everything, the conversations will provide information to build a more robust estate plan with fewer potential surprises. This, in turn, will help to create a legacy that loved ones will remember fondly.”