Proven Ways To Protect Your Pet Finances Better

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Nearly a third of pet owners say they’re spending more than they were a year ago — and many are shelling out $100 or more each month just on food and treats.
Pet owners are making trade-offs to keep up. Many are cutting back in other areas, hunting for better deals and turning to pet insurance to handle surprise bills.
A little planning can go a long way. Experts say tracking your spending, prioritizing what matters and building a small savings cushion can help make the costs more manageable.

Inflation has hit nearly every aspect of consumer spending, from gas and groceries to housing and health care to travel and tuition. But pet owners are feeling the squeeze in particular.

Nearly a third of pet owners said they spend more on their pets today than they did a year ago, with 36% spending at least $100 monthly on food and treats alone, according to a recent survey of 1,590 U.S. dog and cat owners by Money.com and Healthy Paws Pet Insurance.

As many pet owners can attest, the companionship of a furry friend is worth the cost. But that doesn’t make affording it — or deciding whether to spend even more on non-essentials like pet insurance — any easier.

“It’s not just dollars and cents,” says Joon Um, a certified financial planner with Secure Tax & Accounting. “For many people, these are family members, so the decision is often emotional as well as financial.”

Rising costs go hand-in-hand with financial concerns for owners of chronically ill pets; 58% say pet costs cause significant financial stress, compared to roughly one in three (31%) of owners whose pets don’t have a chronic condition.

As a result, many pet owners are adjusting their budgets in real time. More than half (62%) of people with chronically ill pets said they’ve been forced to cut back on other spending, while 48% of owners with healthy pets said the same.

Cutting back can only go so far. For pet owners trying to regain control of their budgets, experts suggest taking a step back to get a clear picture of where all their money is going.

“Then you can decide whether all of those things are necessary and [what] you want to prioritize,” says Crystal Cox, a certified financial planner at Wealthspire.

There are items you’ll have to keep, but maybe some — like a monthly dog toy and treat box subscription — can be cut. Roughly 4 in 10 survey respondents said they’re shopping around for the best prices to trim routine pet-related spending while 30% said they’re buying in bulk, 32% are grooming their pets at home and 17% are switching to generic medications when possible.

Cox suggests budgeting for what you need and automating savings. For instance, if you spend $4,000 a year on your pet, try putting $333 per month, or $80 a week, into a dedicated pet savings account (a strategy 15% of survey respondents say they’re already using).

Many people are also turning to pet insurance, particularly among younger generations — separate research by Money and Healthy Paws found that 51% of Gen Z and 35% of millennial pet owners own a policy, compared to just 11% of baby boomers. Pet insurance can help cover vet care, which has jumped 43% in price since 2021, according to the Labor Department. Plans typically don’t cover routine care like checkups and vaccinations, but they can relieve some of the financial burden if your pet gets sick or injured.

“It can make sense if someone wants protection from big surprise costs,” Um says. “But it’s not always a clear financial win. It depends on the price and coverage.”

Some people prefer paying for peace of mind, while others set money aside and handle costs as they come, he adds.

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