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The New Rules of Tipping
Tweet Share on Facebook January 7, 2008 Comment (57)We all know that waiters should get somewhere around 20 percent of the final bill. But what about newspaper delivery workers? Or the housekeeping staff at a hotel? Feeling perpetually confused about tipping myself, I turned to Judith Bowman, a protocol consultant and author of Don't Take the Last Donut, to go over the basic rules.
Can you please explain your basic tipping philosophy, including how you know when to tip and how much?
Tipping is not mandatory. Literally translated, to "tip" means "to ensure promptness." [But] tipping is also a way of saying thank you for services rendered.There are no absolutes in terms of whom one should tip. However, generally speaking, service providers should be tipped anywhere from 18 to 22 percent. The 10 to 15 percent tip is archaic. That said, the elderly individual on a fixed income who offers $1 to the maitre d' should be applauded, and the service staff should accept the gesture as graciously as they would a $50 gratuity. Overtipping is never a negative, however, as this serves to help ensure prompt service, particularly if one is a regular customer.
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A Financial Makeover for Britney Spears
Tweet Share on Facebook January 4, 2008 Comment (44)Court papers have revealed that Britney Spears saves none of her $737,000 monthly income, instead spending it on two mortgages, eating out, entertainment, and other living expenses. While most of us have substantially less cash to throw around, the same basic principles that money experts dole out to us normal folks apply to celebrities, too. Here are some tips for Britney that her fans also might find helpful:
Start saving 10 percent of that monthly income immediately. Manisha Thakor and Sharon Kedar, authors of On My Own Two Feet: A Modern Girl's Guide to Personal Finance, recommend setting up your bank account for automatic deposits so you aren't even tempted to spend the money that should be going into savings.
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Premovie Ads Frustrate Viewers
Tweet Share on Facebook January 3, 2008 Comment (15)When I went to see Nicolas Cage in National Treasure: Book of Secrets over the weekend, I found myself stuck in a half-hour of previews and a Disney short before the movie even started, not to mention advertisements for local businesses before the previews began. The 9:30 p.m. showing of the movie itself didn't get underway until 10 p.m. Having paid $10.50 for my ticket, I thought it unfair of the theater to subject me to what are essentially advertisements for a full 25 percent of the film's running time. Why should consumers pay to see ads, which are designed only to make us spend more money?
It turns out I'm not the only one irked by the practice. Other bloggers have expressed similar frustrations. And we're likely to find ourselves sitting through even more commercials in 2008. The Cinema Advertising Council reports that advertising in movie theaters is experiencing double-digit growth each year, partly because research suggests it is one of the best ways to reach young and affluent consumers.
The industry's research also suggests that most people aren't bothered by movie theater advertisements. In one study, 63 percent of moviegoers said they did not mind advertising before the movie begins, although that percentage declined with age. By age 50 and over, only half of the survey participants said they did not mind the ads.
Readers, do you mind watching advertisements before movies? Do you think it's fair for theaters to broadcast commercials to paying customers?
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Credit Card Users Win Cash
Tweet Share on Facebook January 2, 2008 CommentTens of millions of credit card users received letters in the mail over the past couple of months informing them that they may be eligible for a refund of the currency conversion fees paid during overseas transactions. The settlement was the result of a lawsuit alleging that Visa, MasterCard, and Diners Club did not disclose the 1 to 3 percent fees they charged on foreign transactions.
The paperwork, though, can be somewhat confusing. Some recipients even suspected the mailing was fraudulent. To help you figure it out, here are answers to some common questions about the lawsuit.
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Making Financial New Year's Resolutions
Tweet Share on Facebook December 31, 2007 Comment (9)As the New Year begins, I asked some of my favorite personal finance bloggers to share their money-related goals for 2008. I was most inspired by the resolutions related to dreams—saving for a trip to Italy, quitting a day job to work on a passion, or sending a soon-to-be-born son to college. So much personal finance talk relates to problems, such as paying off debt or saving for an emergency fund. Sometimes stepping back and considering the big picture is a welcome break. Here's to a year of turning those dreams into reality.
Boomie at the Wastrel Show: My goal for 2008 is to save up enough money to visit my family in Italy once again. I met most of them for the first time last year and promised to return this year. Because of the falling dollar and rising euro, the same exact trip this year costs $3,500, compared to $2,500 last year. Since I live debt free and do not use credit, it will take me longer to save the money. My revised goal is to see them every 18 months.
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Study: Costco Customers Are Irrational
Tweet Share on Facebook December 28, 2007 Comment (159)If you find yourself drawn to membership-based stores such as Sam's Club or Costco, which charge customers a fee for the ability to shop there, because you believe they save you money, you are not alone. But you also may be wrong, at least some of the time.
According to new research from Harvard Business School, paying a fee to shop leads people to think they are saving money even when they aren't. The researchers acknowledge that membership stores do often sell products at a discount. By their calculation, one New England Costco was 9.5 percent cheaper than a nearby Wal-Mart.
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Credit Card Companies Share Personal Information
Tweet Share on Facebook December 27, 2007 Comment (8)Dear Alpha Consumer,
As the owner of a Chase credit card, I recently received the Chase Privacy Policy in the mail. I was surprised to read that even if I request that my personal information not be shared, Chase may share it anyway. Why does Chase ask me if I want to share my information if they are going to do so even if I tell them not to? Does asking them not to share my information mean anything? Is there anything I can do stop them from sharing my information?
After getting my hands on a copy of the Chase privacy policy, I asked the company to explain itself. After all, on the face of it, a policy informing you that you basically have no choice about where your information goes is a bit disconcerting. Does signing up for a Chase credit card mean you are doomed to receive dozens of advertisements from other companies that suddenly know your name and address and, possibly, your buying habits?
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Do Women Work Harder?
Tweet Share on Facebook December 24, 2007 Comment (13)An E-mail with an intriguing subject line landed in my in box the other day: "Women must work harder, UVA sociology study says." If this were true, that women did, indeed, have to work harder than their male counterparts, then it would all but confirm the words of Canadian feminist Charlotte Whitton, printed on mugs and magnets around the country: "Whatever women do, they must do twice as well as men to be thought half as good. Luckily, this is not difficult."
As someone who grew up drinking tea out of a mug that said just that, I was eager to read this study. And after doing so, I'm not sure it does support the phrase.
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So, What Would Jesus Buy?
Tweet Share on Facebook December 20, 2007 Comment (3)If you're feeling overwhelmed by shopping this month, What Would Jesus Buy? is the movie for you. By equating elaborate gift giving with consumerism gone wild, it will help you justify the impulse to stop buying presents altogether.
Morgan Spurlock, who also brought us the documentary Super Size Me, produced the film that follows the character "Reverend Billy," the alter ego of consumer advocate Bill Talen, leader of the Stop Shopping Gospel Choir, across the United States in an attempt to get people to retire their plastic and, instead, simply enjoy each other's company over the holidays.
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Student Loans Can Ruin Parents' Credit
Tweet Share on Facebook December 19, 2007 Comment (13)Dear Alpha Consumer,
I cosigned for student loans for my children, as they could not get financing on their own when they went to college. In addition, I have also taken out student loans for them in my name. We have found that the education loan companies work differently than most business creditors. They do not offer as long a grace period for your monthly payment and report you to credit bureaus very quickly. On a couple of occasions, my children have been late making a loan payment. These incidents were reported to the credit bureau, and my credit score has dropped as a result. We have tried to replace these loans but have been unable to find a lender willing to do so. I am sure I am not the only parent in this situation. Any advice you might have would be very much appreciated.
You did a nice thing for your children by letting them put your name on their loans. Unfortunately, they are doing a not-so-nice thing to you.
From the lenders' perspective, it doesn't matter that you seem to have an arrangement with your children that requires them to make the monthly payments, even though your name is on the loan. To the lenders, you took out the loan, so you are responsible. If your children are going to make late payments, then it will hurt your credit score, and the only way to get around it is to make the payments for them—something you probably don't want to do.
