Pets can be wonderful and fulfilling, but they can also be expensive. Before falling in love with a tiny, furry face, potential pet owners should take a serious look at their finances.
“Americans spent about $158 billion on pets in 2025. This year, it’s expected to be about $165 billion,” said Ed Gjertsen, certified financial planner and founder of Engage Wealth Group. He joined Judson Richards on the WBBM Noon Business Hour this week.
For pet-owning households, that comes to an average of $4,200 per year, Gjertsen said.
“That is not an insignificant line item,” he added. “So not only are you thinking about what pet to bring in, but how are we going to be able to afford and plan for the financial wherewithal of that pet?”
Last year, Audacy reported on rising pet costs in the U.S. This year, we covered reports that veterinary bills are getting so expensive that pet owners are traveling to Mexico to get care for their pets. There are also food costs, boarding costs, pet sitting costs and more.
“Pet ownership may be that initial emotional decision… we love these creatures that we bring into our house,” said Gjertsen. “It’s definitely a financial decision as well, because routine pet care is running up against inflation. So, what used to be sort of minor line items in terms of our overall household finances is now becoming a much, much bigger item in the overall expenses.”
So, what can people do if they’ve decided they need to add a cat, dog, lizard or other family member from the animal kingdom into their household? Gjertsen has some suggestions.
Pet insurance can be an option – Gjertsen said his family went that route for a particularly active dog – but it should be purchased before pets have any sort of incident where it would be necessary. There’s also the pet fund method, where households can put away money each month for potential pet emergencies.
“If you happen to have a great healthy pet throughout its life and duration, you’ve got some funds left over either to buy another pet or celebrate the pet’s life,” Gjertsen said.
Whatever pet owners choose, he recommends approaching pet ownership with “eyes wide open” about the costs.
