Tipping Costs Canadian Millennials Nearly Two Years’ Wages Over Their Lifetime

Tipping is a hot topic in cities across Canada.

We’ve covered it extensively – from the server perspective to guides – and the range of opinions on the matter is truly astounding.

Yes, servers need tips to survive. And yes, diners shouldn’t compensate for what should be an employer’s responsibility. Let’s throw a fantastic movie scene into the conversation for good measure:

What’s even more astounding is the amount of money Millennials – aka the generation that forgot how to pack its own lunch – spend on tips over a lifetime.

According to Canadian startup Lendful Financial, millennials will spend $76,627 on tips over the course of 30 years – roughly 3,800 avocado sandwiches in Australia.

The calculation is based on an average after-tax income of $41,000, which means we’ll spend about two years’ wages on gratuities.

tipping costs millennials

“A gratuity is supposed to be a gift on top of the bill, but really what it has become is an extra tax on the service received, and one that continues to rise disproportionately to inflation,” Lendful CEO and co-founder Alex Benjamin said.

“Tipping norms in Canada have gone from a generous 10 to 15 per cent to now 18, and even 20 per cent in many markets, and in the process, the custom is starting to have a substantial impact on the financial futures of Canadians.”

But maybe if you didn’t eat out all the time you could afford to buy a place to live. Just kidding.

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