Pets as Financial Advisors: How Furry Friends Influence Our Spending
A new study shows that pets can be excellent motivators for managing your finances. Many pet owners treat their pets as key members of the family, and these furry friends are impacting how people spend their money. According to Pew Research Center, more than half of pet owners think of their pets as family members just like any human.
Pets and Budgeting
Owning a pet means you need to budget for various costs like insurance, vet care, food, and even trendy accessories like bandanas and leashes. Although pets can be expensive, they are still more affordable compared to human children. For example, parents spend between $16,000 to $18,000 per year on their children, based on USDA estimates, while pet owners spend around $1,300 per year, according to Empower.
Julio Bedolla, a wealth manager with LourdMurray, believes that pets can teach important budgeting skills. He and his wife own six dogs, which have a significant impact on their spending. He says that regular expenses for pet care help them understand the importance of planning for future costs, and building emergency funds for unexpected vet visits or insurance.
Preparing for Parenthood
Pets can also prepare people for the responsibility of raising children. Bedolla mentions that while they’re not ready for kids, caring for their pets has given them a sense of the ongoing financial commitments needed. However, he agrees that raising children involves much higher costs, especially when it comes to childcare and education.
Financial Considerations for Pet Owners
When making major financial decisions, like buying or renting a home, pet owners have to consider their pets. Not all homes are pet-friendly, and this also affects costs related to travel. “You need to factor in pet costs, whether it’s boarding them or taking them with you,” says Bedolla.
Good and Bad Money Habits
Kristi Hedrick, a millennial, shares how her three cats and soon-to-be puppy have influenced her spending habits. She always keeps money saved for pet emergencies and includes their special diet food in her budget. However, she admits to sometimes splurging on extra toys and treats, which isn't always the best financial decision.
Cost Awareness
Understanding the costs of raising a pet is crucial. Ali Smith, CEO of Rebarkable, advises pet parents to research average costs, breed-specific health issues, and temperament. She points out that rescuing a pet might come with unexpected health and training bills.
“In the Empower survey, pet owners reported spending the most on golden retrievers, beagles, German shepherds, Labrador retrievers, and dachshunds.”
Lifestyle and Career Changes
Some pet owners even change jobs for better pet-friendly benefits or more flexible hours. Empower's survey showed that nearly 60% of respondents switched jobs for better benefits, even if the pay was the same, and over a quarter would take a pay cut to spend more time with their pets.
“Think critically about your lifestyle,” says Smith. “Do you need support from a doggy daycare or a dog walker? All of that costs money—and owning a pet can be a long-term financial commitment.”
In summary, while pets might seem like a simpler financial responsibility compared to children, they still require thoughtful budgeting and planning. Their influence on our finances can be profound, prompting us to develop good money habits and make significant lifestyle and career choices.
