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By Ted McCarthy
Special to the Financial Independence Hub
People are spending more on their pets than ever. No matter the pet type (hamster, dog, snake, etc.), people are willing to pay a pretty penny on their pets. The APPA reported that US$72 billion was spent on pets in 2018.
People are spending so much on their pets, LendEDU wondered if people were willing to go into debt for their pets, or spend more on their pets’ wellbeing than their own?
Pet insurance is becoming more popular with pet owners, with 2.1 million pets insured in 2017.
LendEDU surveyed 1,000 adult American pet owners to see how much they spend on their pets, with or without pet insurance.
Spending breakdown on pets
The survey showed the breakdown of pets:
- 24% of expenses go to healthcare/vet costs
- 55% of expenses go to food
- 13% of expenses go to toys & accessories
- 8% of expenses go other
These statistics are about in line with the APPA’s statistics, as over US$30 billion out of the US$72 billion spent on pets in 2018 was food alone.
The pet business is massive in America and will continually grow according to the APPA. As consumers treat their pets better and more as part of the family than before, spending per pet will increase, and people are willing to spend that money.
Pet types
Out of the six pet types surveyed, dog owners spent the most acquiring their pet at an average of US$327.13, and fish owners spent the least at an average of $53.58.
Monthly expenses stack up to about the same. Dog owners spend an average of US$157.39 per month, bird owners, an average of $127.38, and cat owners an average if $95.11.
Healthcare
People spend quite a bit on their healthcare, but they can spend just as much on their pets. 45% of people spend the same or more annually on their pet’s health care expenses versus their health care expenses.
This exhibits that people are willing to put their pets before themselves.
Insurance
With over 2 million pets insured in 2017 (about 1-2% of the U.S. pet population), the pet insurance market is considerable. With the average cost of insurance being US$76.76 per month, according to our respondents.
For those who did not purchase pet insurance, 40% thought the policies cost too much, and 39% didn’t think their pet needed/needs insurance.
However, insurance has saved respondents thousands of dollars in healthcare and veterinarian expenses for pet owners.
Some respondents (24%) were forced to go into debt because of their pet’s health or veterinarian costs, at an average of $1,566.96.
Delaying milestones & financial obligations
Some people have even delayed certain milestones or financial payments due to expenses from their pets. For instance, 11% said that they’ve delayed “having children or more children.” 8% of respondents have delayed getting married, and 10% of respondents have missed bill payments.
These figures show how much people care about their pets so much that they are worth delaying having children.
While people do care about their pets, it’s important for consumers to note if they can truly afford their pet, as missing bill payments or putting their financial life on the line for their pets isn’t necessarily a wise decision.
The big picture
Pet owners have increasingly cared more about their pets and integrated them as a core part of the family (and sometimes have them instead of children). As this transition occurs, consumers will be willing to spend more on their pets.
If you’re planning on getting a pet, make sure it makes sense with your finances first. Missing bill payments or making smaller payments on your mortgage or student loans may not be worth owning a pet.
Ted McCarthy is a Research Analyst Intern at LendEDU, helping create data-driven content. He is a current student at Rutgers Business School, double majoring in Finance and Economics. He is also a Brooklyn Nets superfan.
