Pet-Proofing Your Budget: Financial Tips for Dog and Cat Owners

Pets are not cheap.

They are way more expensive than the average person realizes.

U.S. households spent an average of $2,026 on their pets in 2024 alone. This figure is rising year over year.

The problem is that most pet owners do not plan for these expenses. Veterinary visits, daily food costs, emergency treatment… these things can wreak havoc on savings.

However, proper financial planning can allow for pet ownership that does not decimate budgets.

In this article, you will learn:

• How much pets really cost owners
• Tips for budgeting as a pet owner
• Overview of pet insurance options
• Ways to save on pet expenses

Pet Ownership: The Full Costs

Pet ownership is expensive.

Dog owners pay an average of $2,351 per year on their dogs, and cat owners pay $1,443 per year. Of course, these are just averages.

In reality, the costs associated with pets can be much higher.

According to the American Veterinary Medical Association, the average veterinary visit now costs $200, up from $147 just one year ago. Emergency visits can set a pet owner back even more.

Emergency visits?

Food, treats, toys, grooming, boarding, checkups. These and other costs add up.

Add in the occasional surprise:

• Sudden illness or accidents
• Chronic conditions
• Emergency surgery

For pet owners, these are the times when financial planning is key. And when pet insurance company reviews get so popular among those savvy pet owners wanting to know the best pet insurance companies to protect themselves and their wallets.

Budgeting Smart with Pets

Pet-proofing any budget is actually quite simple:

Plan ahead.

But how?

Let’s break down exactly what to do to create a budget and stick to it…

Create a Monthly Pet Fund

Setting aside a fixed amount each month for pet-related costs is a great way to ensure no surprises in a budget. This fund should cover:

• Food/treats
• Basic supplies
• Routine veterinary costs
• Grooming

Start with about $100-200 per month for dogs and $75-150 per month for cats. Adjust for your pet’s specific needs.

Emergency Savings for Pets

Emergency veterinary visits are the number one way pet owners get their finances stressed.

The best solution is simple but requires some self-control.

Build a separate emergency fund for your pet with $1,000-2,000 saved. This gives a buffer for those unexpected expenses and prevents them from derailing an entire budget.

Some pet owners will go more aggressive and aim for $3,000-5,000 for major accidents or illnesses that require surgery or ongoing treatment.

Keep Track of Every Cost

Most pet owners have no idea how much they actually spend on their pet.

The solution is easy. Start tracking every expense:

• Food
• Vet visits
• Impulse toy purchases at the pet store
• Whatever else you can think of

After a few months, you will see the patterns. And in those patterns lie the opportunities to save money.

Pet Insurance: What to Know

Pet insurance is more popular now than ever before.

Why the boom?

Pets are just plain more expensive to care for. And veterinary visits and care in general continue to become more and more expensive.

There were 6.4 million insured pets in the United States by the end of 2024, according to the North American Pet Health Insurance Association. Compare that to 3.1 million in 2020.

Let’s go over some important facts about pet insurance…

Average Pet Insurance Premium Costs

Numbers look like this:

• Dogs: Average Accident & Illness coverage costs: $676 annually ($56 monthly)
• Cats: Average Accident & Illness coverage: $383 annually ($32 monthly)

It is less for accident-only policies, but those do not cover common illnesses or chronic conditions.

Typical Coverage

Coverage typically includes:

• Accidents and injuries
• Illnesses and diseases
• Surgeries and hospitalization
• Prescription drugs
• Diagnostic testing

Some offer add-ons for wellness coverage that can be used for routine care. Others do not.

Is Pet Insurance Worth It?

Does it pay off to buy pet insurance?

For healthy younger pets, probably not.

Monthly premiums can easily exceed actual vet bills within a given year.

But for pets with known health issues or for breeds with high risks for specific accidents and illnesses? Pet insurance often more than pays for itself with even a single major claim.

The key is research. Compare policies, deductibles, reimbursement rates, and annual limits.

Cut Pet Expenses: Save Money without Sacrificing Quality Care

Need to save money with your pet, but do not want to cut corners on the care they receive?

There are strategies that work…

Buy in Bulk

Pet food is the single largest ongoing expense. Buy larger bags/cases to reduce the per-unit cost. Store it properly so it does not go stale.

Discounts are also available through subscription services at many pet food stores. Set up auto-delivery and save 5-15% on regular prices with no extra effort.

Prioritize Preventive Care

It is cheaper to prevent a problem than to treat it later.

Regular veterinary visits that perform routine checkups and procedures can help head off problems before they develop. Vaccinations, dental care, routine parasite prevention… these can all help avoid the larger emergencies down the road.

Consider the math…

$200 per year for a basic checkup might find a health condition that would otherwise go undetected until it costs $2,000 to treat. A 10x return on investment right there.

Shop Around for Services

Veterinary costs can vary significantly. You might find a $200 procedure at one veterinary office and the same procedure for $500 at another location.

Call around and ask for quotes. Many veterinarians also offer payment plans.

Discount vaccination clinics at pet food stores are also a nice way to get routine shots at a fraction of the cost of traditional veterinarian visits.

Buy Generic Medications

Brand name pet medications come with premium prices. Generics can offer the same efficacy at a fraction of the cost. Ask the vet about less expensive alternatives.

Online pet pharmacies are also often less expensive than local pharmacies. Just make sure the online option is legitimate before ordering.

DIY Grooming

Professional pet grooming is a real budget killer. Learning basic grooming skills at home can save hundreds of dollars per year. Nail trims, brushing, and even basic baths are all easy to learn with a little practice.

YouTube has numerous tutorials on basic grooming skills. A few hours of learning and practice now saves years of later expenses.

The Bottom Line

Pets do not have to break a budget.

The key is to be proactive rather than reactive. Planning for costs ahead of time rather than as they occur. Saving for emergencies. Carefully researching insurance options that make sense for the pet and family.

A quick recap of the above points:

• Create a separate monthly pet fund
• Build emergency savings cushion for pets
• Track all pet-related expenses
• Carefully consider pet insurance options
• Save money where it makes sense without sacrificing quality care

Pets cost money. No doubt about it. But that cost does not need to be a surprise.

Nor does it need to be insurmountable.

The difference between stressed-out pet ownership and relaxed enjoyment of a furry family member is financial planning.

Remember these tips and make pet ownership work for your budget and your wallet.