What Pet Expenses Should You Budget For?
Pet parents are spending more on their fur babies than ever, with the pet industry reaching record-setting sales numbers in the last two year. On average, dog parents spend roughly $1,500 in annual costs, ranging from healthcare to food to boarding, and cat parents spend a little over $900 in annual costs, according to a 2021-2022 survey conducted by the American Pet Products Association. (That’s not an exhaustive list of pet expenses, either.) The top expense category is veterinary services, with the average dog parent spending $700 on vet bills for the year, and the average cat parent spending about $375.
“There is no one-size-fits-all answer to how much of your income should go toward pet costs, as it will depend on your financial situation, priorities, and your pet's specific needs,” says Andrew Latham, a certified financial planner and the managing editor of SuperMoney.com. “However, as a general rule, it is a good idea to set aside a specific budget for your pet's expenses, including food, supplies, medical care and any other necessary costs.”
Latham adds that it’s important to have this budget created before an emergency occurs. “When you are in an emergency, your emotions and stress levels can be heightened, making it more difficult to think clearly and make good decisions.”
In general, you should expect these costs of pet ownership in your budget:
- Medical expenses: Flea prevention, vaccines, dental care, and other medical costs
- Food: Pet food, treats, supplements
- Grooming: Shampoo, cuts, nail trimming, ear cleaning
- Pet sitting: Boarding, overnight stays at your home, daycare, drop-ins for walks/feeding
- Training: Obedience, behavioral issues
- Accessories: Collars, leashes, ID tags, bowls, clothes, toys, bedding
- Miscellaneous pet supplies: Litter box, waste bags, aquarium pumps, heat lamps, etc.
Even though there’s no one magic number for how much you should be spending, it is important to keep these costs in check. Forrest McCall, a personal finance expert and owner of the finance site Don’t Work Another Day, recommends keeping your costs under 5% to 6% of your take-home pay.
“This should give you enough to provide the basics,” he says. “Depending on your income, this number might be higher or lower—it’s all about what you can afford compared to your other necessary expenses and how you prioritize them.”
So say you earn $50,000 per year after taxes. That means you should plan to spend a max of $2,500 to $3,000 a year on pet costs.
Start a “Sinking Fund”
It can be challenging to balance pet expenses with all of your other bills, especially when you don’t always spend the same amount each month.
To help with this, McCall says it can help to have a “sinking fund” for pet expenses. This is a special savings account where you set aside money each month for planned, irregular expenses.
For example, if you know you want to go on vacation this summer but don’t have a friend or family member to watch your pet, you can put money in the sinking fund to pay for a sitter. Make this a line item in your pet budget so you always have funds to pull from when you need to buy a new leash or pay a pet sitter.
Budget for Emergencies
It’s also a good idea to maintain an emergency fund. Nothing is worse than being hit with a surprise vet bill when you don’t have any extra cash in the bank. “This money should be saved and set aside, so if there is an emergency vet visit, you’ll have the funds available to keep your pet safe,” McCall says. Aim to have an extra $1,000 for emergencies.
Sample Pet Budget
So what should your pet budget look like? It’ll depend on the type of pet you have, the level of care they require, and more. But here’s an example of a monthly budget you can use for inspiration:
