Living Expenses for a Pet – and How to Pay for It
Important takeaways
- The average pet is now worth more than $50,000 over the lifetime of a cat or dog, according to research from Money and Healthy Paws Pet Insurance.
- The real costs of owning a pet extend beyond the monthly basics like food and vet checks.
- Planning ahead for savings and insurance can make those costs manageable.
Pet owners can do anything for their animals – but that care comes with a significant price.
The average annual cost of a cat or dog now averages $4,272, adding up to more than $50,000 over a 12-year lifespan, according to new research from Money.com and Healthy Paws Pet Insurance.
For many families, the real challenge is not just budgeting for everyday expenses. The hard part is planning ahead so you can cover the full range of pet living expenses. Pet services such as grooming, grooming and boarding are up 38% from 2021. Animal care alone increased by 43%.
“Many pet owners are not fully prepared for the true costs of ownership,” said Tessa Steinemann, managing partner and chief financial officer at True Alpha Wealth Management. “The gap we see is that people manage the daily expenses, but they are not financially ready to pay for the big and unusual expenses.”
Monthly pet expenses add up quickly
Even routine maintenance can take a significant amount out of the household budget. More than one-third of survey respondents spent $100 or more per month just on food and transportation. Pet care is another big expense: About 29% of owners reported spending at least $100 each month on vet visits, and another 16% said they spend at least that much on medications and vets.
Many of those costs are easy to underestimate, Steinemann said. “Things like boarding pets while traveling, dog grooming, regular grooming and quality food are all part of the lifestyle and can have a big impact on the budget.”
For households with pets with chronic health problems, the financial burden can be very steep. About a quarter of those surveyed spent between $5,000 and $10,000 on pet-related expenses in the past year. More than half (58%) say those costs have caused financial stress – almost twice the rate of owners with healthy pets – and 62% say they have to cut back on spending elsewhere.
How pet owners cover unexpected expenses
When delaying maintenance is not an option and costs exceed what they can afford upfront, many owners turn to a mix of resources: savings, credit cards, personal loans, payment plans and even crowdfunding. For many, those difficult decisions are motivated by the emotional ties of pet ownership.
This is another big reason why many owners consider pet insurance as a way to manage their pets’ medical expenses. Claims data from Healthy Paws shows that the average vet bill was nearly $392 per claim in 2025, up 32% from 2020. Costs for certain treatments have risen even faster, including stomach conditions, cancer and transplants.
Insurance coverage comes with costs. Average monthly premiums are approximately $62 for dogs and $32 for cats, not including deductibles or co-payments. But for many pet owners, insurance helps ease the financial impact of major medical expenses. Among affected survey respondents, 75% said they “significantly reduced” their out-of-pocket expenses, while 87% reported greater peace of mind and 84% said they would recommend it to others.
The biggest mistake, Steinemann says, is not assessing the full cost of ownership before getting a four-legged friend. “Most people don’t think about how these ongoing costs factor into their monthly income before bringing a pet home.”
Planning ahead can prevent costly surprises
Rather than taking on debt after your pet suffers an expensive health problem, a sustainable approach begins by calculating your annual expenses and allocating a fixed amount for your pet’s care to your monthly budget. “Setting aside money each month ensures that money is available when large or unexpected expenses arise,” he said. Pet insurance can help you plan for an unexpected illness or injury.
Ultimately, owning a pet is an emotional and financial commitment. Planning ahead with a combination of budgeting, savings and insurance can make it easier to give your pets the care they need without straining your household budget.
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