In an era of evolving financial norms and digital transactions, understanding modern money etiquette has become increasingly essential. From tipping practices to salary transparency, society is navigating a complex landscape of financial interactions. The founder of consultancy The Glass Female identifies three recurring themes in these interactions. With the rise of secondhand selling platforms like Vinted and eBay, haggling has become more common, despite many British people finding it uncomfortable. Meanwhile, the cost of living pressures are fostering greater understanding in financial matters, as observed by Dr. Caroline West of the dating app Bumble.
Recent trends show that a shift in tipping practices is underway. According to Kate Nicholls, chief executive of UKHospitality, giving a cash tip ensures that the recipient retains it. However, under UK legislation introduced in 2024, all money left, including service charges, must be distributed among staff, although each venue can decide how. In the hairdressing industry, tips typically range from 5% to 20%, with amounts like £10, £15, or £20 being common, notes Adrian Harris of thankU Cashless Tipping.
Digital solutions are also becoming popular for managing finances with friends and family. PayPal's new pooling feature allows users to create tabs and share links via email or WhatsApp for easy bill splitting. Apps like Splitwise are similarly helping facilitate group financial interactions by automating the sometimes awkward process of asking friends for money.
The Rise of Salary Transparency
As discussions about salary transparency gain momentum, many employees are questioning whether they should discuss earnings with colleagues. Daniel Zhao, lead economist at Glassdoor, emphasizes that while employers may discourage such discussions, they have no legal right to enforce this prohibition. Zhao states:
"Pay transparency is an important tool for workers to ensure they are being paid what they deserve, and has the potential to mitigate pay inequities by revealing gaps that might otherwise have hidden in the shadows."
Nevertheless, Zhao advises caution when using colleagues' salaries as leverage for personal pay raises. The nuances of individual responsibilities and experiences can justify pay discrepancies.
"A colleague may be paid more because they have responsibilities or experience you aren’t aware of. The most common mistake when asking for a raise is simply saying that your colleague makes more than you as your argument."
For many employees seeking raises, personal dissatisfaction or external financial pressures often drive their motivations. Bryony Williams, a coach whose clients frequently seek guidance on asking for pay rises, observes:
"Clients think someone else is getting more and feel undervalued where they are; they’re not happy at work and they see financial compensation as the plaster to make them happy again; or they’re under financial strain and the desire for a raise comes from external pressure."
Navigating Social Interactions with Financial Sensitivity
In social settings, especially first dates or outings with acquaintances, there's a noticeable trend towards cost-effective activities. Nearly a third of young adults aged 18 to 34 prefer suggesting a walk over more expensive options for a first date. This shift reflects broader financial consciousness amid rising living costs.
Tipping remains a nuanced practice in social dining experiences. Caroline Larissey from the National Hair and Beauty Federation suggests leaving a positive online review if tipping isn't financially feasible:
"If you can’t afford to tip, Larissey suggests you leave a positive review online instead."
In dining contexts, tips left on bills benefit the entire team working behind the scenes. Nicholls articulates this collective benefit:
"Leaving a tip on the bill or behind on the table will benefit the whole team, from front-of-house to chefs and kitchen porters working hard in the kitchen."
Apps dedicated to social expenses are also gaining traction. Splitwise and similar platforms are streamlining group activities by splitting costs seamlessly.
Legal Considerations in Financial Planning
When it comes to inheritance planning, having agreements in writing is crucial. Tara Edwards, a private client executive at Wellers Law Group, underscores the importance of clear documentation to ensure that one's intentions are honored after passing.
Meanwhile, modern technology provides tools for financial collaboration among friends and family. PayPal's new pooling feature represents a step towards more straightforward management of shared expenses.
Haggling, although historically less prevalent in British culture, is becoming increasingly widespread due to platforms like Vinted and eBay's "make an offer" options. While it may be daunting for some, this practice reflects shifting attitudes towards value and negotiation.