According to a recent survey 98% of cat and dog owners significantly underestimated the lifetime cost of their pet by a wide margin. The majority of respondents thought it would be less than $6,500. 12% of those owning a dog or cat stated that they expected to pay less than $650 for the pets entire life! These people know that animals need food right? Just kidding, but clearly they were not adding things up correctly. So how much does it cost to own a pet? The ASPCA estimates that the average lifetime cost is around $15,000 for dogs and $12,500 for cats. And the ASPCA estimate does not take into consideration things like property damage or boarding. A more expansive study done in Great Britain put the numbers even higher, which may sound surprising for some, but it makes sense once you start itemizing everything. Take for example, the owner of a mid-sized dog, after the initial cost of adoption, baying and neutering, then other purchases like crates, bowls, colalrs, leashes and toys. You then have to expect outlays for food, medical bills, grooming, and let's not forget treats. 

For the owner above the average annual outlay is probably going to be somewhere between $800 - $1500 year. If the average life of a dog is 12 years then you are looking at a conservative lifetime cost of over $10,000. And that  doesn't even include anycosts associated with emergency medical visits. Most people considering a new pet probably don't think of it as being as expensive as a new car or a down payment on a house, but clearly it can impact your finances.  However there can be a positive impact on your life as well. Many health studies have found a relationship between pet ownership and improved mental and physical well-being. People who own a dog or cat tend to make fewer visits to the doctor and have lower rates of depression. Children who grow up with animals in the house tend to have stronger immune systems making them less susceptible to viruses and allergies. Even seniors who care for pets actually tend to live longer than those who don't, but that doesn't mean you can't still be cost conscious while being a pet owner. Have you considered adopting versus buying? Not only would you be helping alleviate the widespread problem of animal homelessness, but shelter dogs and cats tend to have fewer health problems. What about fostering a pet? This is a great way to determine if being a pet owner is for you, but the shelter may pay for the medical costs and some of your other expenses may be tax-deductible.

Some people purchase pet health insurance as a way to cut down on medical costs, but most plans will not save you money on routine vet bills, just rare procedures like surgery. If you have a purebred dog many plans will specifically not cover the conditions your breed is prone to experience. Our suggestion is a separate pet emergency expense account (this is not to be confused with your emergency reserves fund), so should something happen to your pet you do no tfind yourself in the situation of having to make the very difficult choice between care or going into debt. We are not saying that you should feel bad about spending money on your pets. Our pets make us happy and happiness is a good reason to spend money, but keeping track of how much you're spending will help you make better financial plans for the whole family. 

The ARIES Foundation for Financial Education,Inc is a nonprofit dedicated to helping everyone have a better relationship with their money. Visit us at www.ariesfoundation.org or shoot us a question at info@ariesfoundation.org