Seventy-five percent of Americans believe tipping has become excessive. Nevertheless, this sentiment hasn’t stopped people from leaving tips.

Good news for service workers: a new survey suggests they may receive more tips this holiday season than in previous years.

The survey, conducted with 2,403 adults across the U.S., indicated that more respondents plan to tip service staff this year compared to last year, as per findings released by Bankrate, a financial services firm. Interestingly, it appears that Generation Z is playing a significant role in boosting holiday tipping. The survey revealed that younger individuals are more inclined to tip generously during the holidays than their older counterparts.

Dean Redmond, a 24-year-old server from Brooklyn, New York, who creates content about his job on social media, noted that patrons tend to leave larger tips during the holiday season. He mentioned that while generosity exists among all age groups, he couldn’t determine exactly why Gen Z might be better tippers than older generations. He speculated that their awareness of service industry challenges, often highlighted in videos like his, may impact their tipping behavior.

“The younger generation tends to feel that, even if the service isn’t perfect, they will still leave a tip,” said Redmond, who has amassed 294,000 followers on TikTok. “In contrast, older people often think, ‘If you treat me well, I’ll treat you well in return.'”

What Motivates People to Tip?

The survey indicated that 80% of respondents say they tip during the holidays primarily as a way to express gratitude. Other common reasons for tipping included rewarding especially good service at 47%, being generous at 40%, feeling it’s a social expectation at 17%, and hoping for better service in the future at 15%.

The survey also highlighted that while more people are expected to tip this year, the amounts will remain similar to previous years.

Who Do People Tip, and How Much?

Gen Z adults, those between 18 and 27, are expected to tip the most in five out of six service categories. However, Millennials set the highest average tip for landscapers among all surveyed age groups.

When it comes to tipping garbage collectors, Gen Z (36%) and Millennials (33%) are the most generous, while only 22% of Generation X and 16% of Baby Boomers said they plan to tip their garbage collectors, according to the survey.

Younger generations are often thought to tip less than older generations mainly due to lower income and less familiarity with social customs, reflects Ted Rossman, a senior industry analyst at Bankrate. “While it’s true that Gen Z and Millennials generally leave smaller tips at restaurants and other venues year-round, they are notably more generous during the holiday season,” he stated.

Additionally, a recent study revealed that Gen Z exhibits a tendency to engage in “doom spending,” where they purchase items as a coping mechanism due to their negative outlook on the future, often influenced by consuming bleak online content.