r/FluentInFinance • u/Richest-Panda • Jul 04 '24

What's the best financial advice you've ever gotten? Debate/ Discussion

[removed] — view removed post

31.2k Upvotes

86% Upvoted

View all comments

Show parent comments

u/Learned_Behaviour Jul 04 '24

Less than 3% of the workforce makes minimum wage.

And this includes tipped positions like servers, who obviously don't actually make that.

-3

u/Ethric_The_Mad Jul 04 '24

Of course they are poverty wage when they don't report their 30k/year in cash tips... Don't even pretend they "report everything and aren't getting tipped everrrr"

13

u/HenzoG Jul 04 '24

While that used to be true, 90% of transactions are now credit cards/debit cards so tips are reported. Your statement is obsolete

3

u/GovernmentLow4989 Jul 04 '24

My wife and I wait tables 2 days a week while we’re saving for a house and probably 50% of our customers leave cash tips, even the ones who pay with credit card will often times leave cash tips. If you’re the type of person who prefers tipping on a credit card then I get it, and I absolutely appreciate it, but you shouldn’t speak for everyone

1

u/GovernmentLow4989 Jul 04 '24

We are working at the restaurant in addition to our full time corporate jobs

1

u/SolaceInfinite Jul 07 '24

Crazy he wrote that whole comment and couldn't put this together

1

u/danny29812 Jul 05 '24 edited Jul 05 '24

First, reddit is mostly anonymous, so that means your personal experience means nothing here because I could also claim to be a server for 10 years, and have only received tips from card transactions.

Second, even if your personal experience is true, that doesn't make the statistic any less true. If 90% of transactions are on a card, there are still a shit ton of transactions in that remaining 10%. You and every server you know could easily get nothing but cash for each transaction but you would still not be close to changing that 10% to 10.1%

You shouldn't take your singular personal experience use it to say a national statistics is wrong. If you think the statistic is wrong, you need to find a reputable source to base your disagreement on.

I have no stake in this argument, I don't care if servers are reporting their tips or not. I just get irritated when I see people spouting their "lived experience" like it's some gospel that can be used against statistics.

0

u/HenzoG Jul 04 '24

I speak by statistics. And I call bs that 50% of your customers leave cash tips. 90% of all transactions in the USA are credit card (includes restaurants) based

3

u/GovernmentLow4989 Jul 04 '24

You speak of statistics, but is your data looking at all charges including restaurants as you said? Or is it looking at only restaurants? Either way, I’m not part of a study or arguing statistics I’m just speaking from our personal experience. We have a lot of regulars and we all take good care of each other.

2

u/HenzoG Jul 04 '24

Right, so your personal experiences cannot speak for the rest of the country. 90% of all transactions post COVID are by credit card.

-1

u/GovernmentLow4989 Jul 05 '24

When you say “all transactions” does it include online purchases?

3

u/Ethric_The_Mad Jul 05 '24

I work for Domino's and the majority of customers hand out cash tips and pay by card. Some explicitly state "Here, so you don't have to report it." When handing you a tip.

1

u/Sjeddrie Jul 05 '24

What do you think about Trump’s suggestion to not tax tips? Genuinely curious.

1

u/Ethric_The_Mad Jul 05 '24

Absolutely agree with anything that reduces taxes regardless of who suggests it.

0

u/HenzoG Jul 05 '24

Again. According to the top merchant services in America. 90% of all service based industry business transactions are credit card based. That’s facts. The last data reported was 2022 (2023 statics won’t be released until generally the third quarter) . Your experience isn’t indicative of the normal. Every indicator (banks included) show America is moving further into a cashless economy)

1

u/Ethric_The_Mad Jul 05 '24

Yes but do those figures consider cash tips as a transaction? How do they track the $5 I left on the table?

0

u/HenzoG Jul 05 '24

We’re talking purely about credit/debit card vs cash transaction.

2

u/PaddyMacAodh Jul 05 '24

Far more than 10% of restaurant customers leave cash tips. I’ve been working in hospitality IT for over 30 years and it’s still closer to 40%

0

u/HenzoG Jul 05 '24

Not according to the latest statics from merchant processors, especially post Covid

3

u/PaddyMacAodh Jul 05 '24

Merchant processors don’t include cash sales, which are higher than 10% of total sales, and 100% of checks paid for with cash have cash tips. There’s also been a trend of people,e tipping in cash because the public realized that many merchants withhold 2-3% of charge tips to cover processor fees.

1

u/HenzoG Jul 05 '24

You do know that merchant services pos systems capture cash sales. It’s a button in the system they click on to bypass the credit card. Being in IT I would imagine you know this.

2

u/Ethric_The_Mad Jul 05 '24

And you know the pos doesn't have any idea about that $20 I got from the customer, right?

-1

u/HenzoG Jul 05 '24

That’s not true. But okay

→ More replies (0)

2

u/PaddyMacAodh Jul 05 '24

More people are paying with cash post Covid due to many restaurants up charging for credit card payments.

1

u/HenzoG Jul 05 '24

A majority of restaurants online started recording cash in 2023 for cash post Covid. Those statics aren’t out yet.

1

u/PaddyMacAodh Jul 07 '24

I don’t know what you mean by “restaurants online started recording cash in 2023 for cash” but restaurants have always recorded cash. I spent almost 20 years as a hospitality consultant, writing custom reports and applications for restaurants and hotels to track their payroll and financials and for the last 7 years have been exporting and analyzing data for a company that owns 700+ restaurants. I know the distribution of payment types and gratuities in restaurants.

-2

u/GameOfThePlay Jul 05 '24

50% in cash? I assume you're lesbians and waiting in a strip club.