Paws, Plans & Your Financial Future

For many households, pets are more than companions they are members of the family. And increasingly, that relationship is influencing the way Americans budget, save, and plan for the future.

A recent survey conducted by The Harris Poll on behalf of the American Institute of CPAs (AICPA) found that 95% of surveyed dog and cat owners consider their pets members of the family. That commitment is reflected in household finances: 62% of pet owners surveyed have a budget for pet-related spending, and 69% said they would be more likely to reduce spending on themselves than on their pets if they needed to make cuts.

With pets playing such an important role in our lives and our budgets, it may be worth considering whether they are adequately accounted for in your financial plans.

Budget for More Than the Basics

Food, grooming, medications, routine veterinary visits, boarding, and other recurring costs can add up quickly. According to the American Veterinary Medical Association data cited by the AICPA, pet-owning households spend an average of approximately $1,515 per year on their pets, excluding adoption or purchase costs.

Routine expenses, however, are only part of the picture. An illness, injury, or other emergency can result in a significant unexpected veterinary bill. Setting aside money specifically for pet-related emergencies can help prevent those expenses from disrupting other financial goals.

Consider How You Would Handle a Major Veterinary Expense

Pet insurance is another option to evaluate. The AICPA survey found that 41% of pet owners have pet insurance.

Coverage, deductibles, exclusions, reimbursement limits, and premiums can vary considerably, so pet owners should review policies carefully and consider whether insurance makes sense based on their pet’s age, health, breed, and their own ability to cover an unexpected expense.

Whether you choose insurance or self-fund potential expenses, having a plan before an emergency occurs can make a difficult situation easier to manage.

Don’t Forget Long-Term Planning

Financial planning for a pet can extend beyond monthly expenses and emergency savings.

Among surveyed pet owners who reported having a will or trust, 40% said their documents include provisions for their pets. Others may simply assume that a friend or family member will step in if necessary.

• Who would care for your pet if you were unable to do so?
• Has that person agreed to take on the responsibility?
• How would the pet’s ongoing care be funded?
• Does your caregiver know your veterinarian, medications, feeding schedule, and other important information?
• Do your estate-planning documents appropriately reflect your wishes?

Pets generally cannot inherit assets directly, but an estate-planning attorney can advise you about options that may be available for providing for a pet’s future care.

Include Your Pet in Your Emergency Plan

Even without formal estate-planning changes, creating written pet-care instructions can be valuable. Consider documenting veterinary contact information, medications, feeding routines, behavioral or medical needs, emergency contacts, and the person authorized to care for your pet.

Keep those instructions somewhere they can be found easily and review them periodically, particularly after adopting a new pet, moving, retiring, or experiencing another significant change.

A Small Part of a Bigger Financial Picture

Financial planning often involves more than numbers it means considering the people, priorities, and responsibilities that matter to you. If your pet is already part of your family’s day-to-day budget, it may make sense to include their needs in your emergency savings and long-term planning as well.

If you have questions about how changing household expenses or financial priorities may affect your broader financial picture, your DBMCPA advisor is available to help you evaluate those considerations as part of your overall planning.