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Is Pet Ownership Becoming a Luxury?
By Liliana Hall MONEY RESEARCH COLLECTIVE
Rising vet costs are changing how people think about pet ownership.
You can budget for dog food, annual vet visits and even the occasional destroyed couch. What’s harder to budget for is the surprise vet bill you never saw coming.
Everyday pet expenses certainly add up. A serious illness or injury, though, can quickly become a financial burden. And as the cost of veterinary care climbs, those risks are starting to shape not just how people budget for their pets, but whether they feel they can afford one at all.
In a new survey of 1,542 pet owners from Money and Healthy Paws Pet Insurance, 55% said rising costs have made them less likely to get another pet, or led them to decide against it altogether.
The survey also found that 60% of pet owners believe having a pet is becoming a luxury that lower-income households can’t afford, while 61% say rising costs are creating inequalities between pet owners.
Taken together, the findings suggest that affording a pet increasingly means planning not just for the everyday expenses, but for the bigger costs that are much harder to predict.
Pets are getting harder to afford
The cost of caring for a pet has climbed significantly in recent years. Healthy Paws data shows that average claim amount is $392, up 32% since 2020, while overall veterinary care prices have jumped roughly 43% since 2021.
Those figures can become considerably higher if a pet develops health problems. About a quarter of owners with chronically ill pets spent between $5,000 and $10,000 on pet-related expenses in the past year.
What’s even harder to calculate is how those costs can add up over the course of your pet’s life. Research estimates that routine expenses for a dog or cat can total more than $50,000 over a 12-year lifespan.
Still, that doesn’t mean pet parents are looking to spend less on their animals. A 2026 survey from the American Institute of CPAs (AICPA) found that 69% would be more likely to reduce spending on themselves than on their pets if they needed to make financial cuts.
Calculating how much to save is a challenge
The unpredictable costs of pet ownership are particularly important to plan for. “The risk of facing a vet bill is what really changes the affordability of having a pet,” says Melanie Musson, a pet insurance expert with insurance comparison site Quote.com.
You can estimate what you’ll spend on food, routine care and other basics, but your pet’s needs — and your expenses — can change as they get older or develop health problems. Determining how much to save for emergencies depends on your pet’s breed, age and overall health, along with the rest of your non-pet expenses.
Musson recommends having a $10,000 financial cushion for pet-related emergencies. Ideally, you’ll never have to tap it, but having that cash available can keep a major veterinary expense from disrupting the rest of your finances.
“That savings can help keep your pet alive and maintain your financial stability,” she adds.
Saving enough for emergencies can be daunting
In reality, most people probably don’t have that much extra money in a savings account, and growing a dedicated pet fund to five figures could take a long time. Fortunately, savings aren’t the only way to prepare for a major expense.
Pet insurance can help cover eligible veterinary expenses. Although you’ll still have premiums, deductibles and other out-of-pocket costs, insurance can protect you from a huge vet bill that makes it hard to pay for other household expenses. Money and Healthy Paws research finds that 75% of insured pet owners say insurance significantly reduced their out-of-pocket expenses.
The survey suggests that can affect more than owners’ finances. Among currently insured pet owners, 47% said they would pursue every recommended treatment for their pet regardless of cost, nearly twice the 24% of never-insured owners who said the same.
There’s no single savings balance that guarantees you can afford a pet, and the goal isn’t necessarily to have $10,000 sitting in a separate pet account. But it’s important to make sure you have a plan for an expensive vet bill before you need one — whether that means savings, insurance or a combination of the two.
Healthy Paws has your furbaby covered!
More From Money
Most Pet Owners Would Do Anything for Their Pets. Not Everyone Can Afford To.
Is Pet Insurance Worth It? Here’s What The Data Shows
The Lifetime Cost of a Pet — and How to Pay for It
Liliana Hall is an Austin-based reporter for Money, where she covers a range of topics, including financial news, policy, banking, investing, passive income, financial planning and student loan debt. Passionate about accessibility and financial literacy, she’s dedicated to helping readers navigate the complexities of money management and feel empowered to make informed decisions about their financial futures. Previously, Liliana covered all angles of personal finance as a writer and editor at CreditCards.com, Bankrate and CNET. Before she ever wrote about money, she worked in a handful of newsrooms across Austin, Texas, covering everything from the Texas Legislature to SXSW and the 2019 Men’s NCAA Swimming and Diving Championships. Her work has been featured in The Daily Texan, Austin Chronicle and KUT. A Texas native, Liliana graduated from the University of Texas at Austin with a bachelor’s degree in Journalism. When she’s offline, you can probably find her paddle boarding on Lady Bird Lake, riding her moped around town or reading for her book club.