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Holiday tipping season has a sneaky way of turning “thank you” into a high-stakes puzzle.

You want to show appreciation to the people who helped with your kids, your pets, your home, your day-to-day. But the list can get long, the rules can be fuzzy, and your budget can only stretch so far.

According to an annual survey by Bankrate, holiday tipping won’t be quite as common this year, with slightly fewer Americans planning to tip their childcare providers, house cleaners, and other workers. (For instance, for childcare providers, the share of people planning to tip dropped to 47% this year from 55% last year.)

At the same time, those that are still tipping are giving roughly the same amount, or more, the survey showed.

So what?

Don’t let gratitude become a source of stress. If you’re not sure who and how much you can afford to tip, start with these basics.

Prioritize. Bankrate recommends focusing on the people who went above and beyond for you this year, rather than trying to spread money thinly across a long list.

For reference, here’s what survey respondents who expected to tip were planning to spend this season (the median amounts):

•   Housekeeper: $50

•   Childcare provider: $48

•   Teacher: $25

•   Landscaper / gardener / snow remover: $50

•   Mail carrier: $20

•   Trash / recycling collector: $25

Depending on who you’re tipping, you might also consider giving them the equivalent of one service (or day’s pay). Or check tipping guides from The Emily Post Institute and etiquette expert Diane Gottsman.

Consider a homemade gift or card instead. You aren’t obligated to give a monetary gift, etiquette experts say. Handwritten thank-you notes, a baked good, or another small homemade gift is not only perfectly acceptable, but signals their work is worthy of your extra effort. (And actually, it’s customary to include a short note with cash too.)

Explore pooling your cash. Holiday tipping isn’t worth overextending yourself and incurring debt. Ask your neighbors or other parents to go in with you when tipping people like the maintenance person or a teacher.

Don’t feel obligated if you already tip. If you tip someone regularly (like a hairdresser) you can forgo a holiday tip or give a more modest amount, according to The Emily Post Institute.

Tap into a company-funded program. Amazon’s seasonal “Thank My Driver” feature lets customers trigger a company-funded $5 bonus for their most recent delivery driver. Once 2 million $5 bonuses have been awarded (it only took eight days this year,) the most thanked drivers each day get a $100 daily prize through December.

The bottom line: Whether your appreciation shows up as cash, a note, or a small gesture, what matters most is that it’s heartfelt — and fits your budget.

Related Reading

Holiday Tipping Guide 2025: How Much to Tip Everyone for Christmas This Year (Reader’s Digest)

Tipping Fatigue Grows as Customers Face Pressure from Digital Payment Screens (Scripps News)

Guilt-Free Tweaks to Trim Your Holiday Budget (SoFi)

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.

SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

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Young savers are loving Roth IRAs.

New data from Fidelity Investments shows younger Americans are the biggest fans of the more versatile retirement savings account, overwhelmingly choosing it over the traditional IRA. In the third quarter, Gen Zs with Fidelity IRAs funneled 95% of their contributions to Roths, while millennials contributed 75% to Roths, and Gen X, 66%.

What exactly is the draw? Roth IRAs are especially useful when you’re in a lower tax bracket than you expect to be in once you retire — or if you might need to access your money sooner. Here’s how they work and how to decide if they’re right for you.

The Appeal of a Roth IRA

You get the taxes out of the way

Some people immediately think of pretax money when they think of a retirement savings account. With a traditional IRA or 401(k), you often don’t pay taxes until you withdraw the money, usually in retirement.

But with Roth IRAs, you invest money you’ve already paid taxes on, which can benefit young people more likely to be in a lower tax bracket. Then your money is able to grow tax-free, and once you’re ready to retire, everything in your account is yours to keep — no strings (aka potentially higher tax rate) attached.

In other words, Roth IRAs align with how most people’s careers actually unfold. They let you get the taxes out of the way when you’re earning less so you can maximize the potential of tax-free compound growth.

Your compound growth is tax-free, too

For any retirement account, the longer you invest, the more opportunity there is for compound growth: Any capital gains, interest, or dividends you earn can be reinvested to potentially earn even more money, giving contributions you make in your 20s and 30s the chance to grow significantly by the time you retire.

With a Roth IRA, this benefit is amplified because whatever you earn won’t be taxed, unlike with a traditional IRA or 401(k).

You have access to your money

In contrast to most retirement accounts, Roth IRAs let you withdraw your contributions anytime, with no penalties or additional taxes. Any investment earnings are a different story, but this flexibility on the amount you contributed makes a Roth IRA especially versatile. Think of it as part long-term investment vehicle, part emergency fund. (Though you’ll miss out on compounding your gains if you dip in to cover an unexpected expense.)

Plus, even earnings aren’t completely locked up in a Roth. While you’ll typically have to pay early-withdrawal penalties of 10% before age 59½, there are some exceptions. You can spend the money on qualified higher education expenses or use up to $10,000 for a first-time home purchase, for instance.

You can leave your money in a Roth

Unlike a pretax retirement vehicle, there’s no requirement to withdraw your money at a certain age. (If you’re wondering why you’d ever want to wait, here’s more on the Required Minimum Distributions, or RMDs, that apply to traditional IRAs.)

What You May Not Like About a Roth IRA

Here are some reasons to choose a traditional IRA or 401(k) over a Roth IRA.

•   You don’t get a tax deduction. Contributing to a Roth IRA doesn’t lower your taxable income because the whole point is to pay the taxes first. A traditional IRA or 401(k), in contrast, can lower your tax burden and potentially your tax bracket now.

   (Not surprisingly, while Gen Zs are more than twice as likely to have a Roth over a traditional IRA, almost the reverse is true of Baby Boomers, according to a mid-2024 analysis by the Investment Company Institute.)

•   High earners aren’t eligible to use a Roth IRA. You can’t contribute to a Roth IRA if you earn over a certain amount (the threshold next year for a single taxpayer is $168,000 in modified adjusted gross income). There is a completely legal loophole, however. Often termed the backdoor option, it essentially involves making a contribution to a traditional IRA that’s not tax-deductible (yes, that’s allowed) and then rolling the funds over into a Roth IRA.

•   There’s no borrowing against your account like some 401(k) plans allow.

•   You can’t contribute as much to an IRA (either Roth or traditional). Next year the contribution limit is $7,500 for either type of IRA versus $24,500 for a 401(k).

Also, while you can withdraw earnings without any penalty once you’re 59 1/2, there’s a catch: It has to be at least five years after you made your first contribution.

*SoFi Plus 2% match on recurring IRA deposits: Active SoFi Plus members are eligible for a 2% match offer on qualifying recurring IRA contributions, up to their Internal Revenue Service (IRS) contribution limit, into their eligible new or existing SoFI IRA account. The match requires the funds and match to be maintained in the account that received the match for five (5) years from the settlement date. Matches are paid in cash within five (5) business days. For complete eligibility and terms, please see the SoFi Plus terms and SoFi 1% Rollover and IRA Deposit Match terms.

SoFi Plus: SoFi Plus is a premium membership that gives members access to our best rewards, benefits, and more when they pay the SoFi Plus Subscription Fee. Between 12/9/25–3/30/26, members with Eligible Direct Deposit or Qualifying Deposits will receive complimentary access to SoFi Plus. Benefits are subject to change and may not be available to everyone. All terms and conditions applicable to the use of SoFi Plus apply. To learn more about SoFi Plus and available benefits and terms, please see the SoFi Plus page.

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.

SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

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