Financial planning for a pet

Getting a pet can be a big day in your life. If you’re thinking about getting a new furry friend, we’re here to help you with a full breakdown of the costs of owning a pet. Find out how to plan for their day-to-day wellness and protect yourself from unexpected problems.

Understanding the true cost of a new pet couldn’t be more important. Animals bring a lot of joy, but pet-ownership is a massive commitment, both personally and financially. Unfortunately, the cost of living crisis, mixed with a boost in pet ownership during lockdown, led to a sharp rise in pets being abandoned at shelters. With a little planning, you can feel confident about whether you’re ready to welcome a new member of the family. 

Let’s take a look at financial planning for pets. From everyday costs — to things like vet bills and pet insurance — we’ll help you plan for the future. 

Pet insurance

According to Compare the Market, the average pet insurance premium is £137 per year (2024). Dogs tend to be more expensive to insure than cats (an average of £158 compared to £81 per year respectively). But either way, those pet costs are not to be sniffed at.

Insurance can give you peace of mind that whatever scrapes your beloved pet gets into, you have something of a safety net in place. Hopefully, you’ll never need it, but it can provide cover for medical bills if they fall ill or have an accident, and cover costs if they’re lost, stolen or have to spend time in a kennel. 

Pet insurance costs normally depend on your pet type and the provider you choose, so it’s worth shopping around on comparison sites to find the best deal. Remember, any pre-existing conditions won’t typically be covered by your pet insurance, so it can pay to organise it as soon as possible.

Vet bills

Preventing problems is often cheaper and easier than solving them. Some vets provide care plans for things like worming tablets and flea treatments, which can help spread the costs. Booking regular check-ups and keeping up with vaccinations can also prevent expensive issues down the road. 

But vet bills can be very expensive. Simple appointments can cost as much as £40-80, without even receiving any treatment. X-rays, injections and other services can easily get into £100s. Added to that, vets aren’t always very transparent about their pricing, so it’s easy to get a nasty surprise. 

Fortunately, there are pet charities like the PDSA and Blue Cross that run pet care memberships to help with vet bills. It can sometimes be cheaper to buy treatments yourself,  rather than directly from your vet. Just grab their recommendations, then search for them online.

Everyday costs for pets

Pet food

Pet food is often the biggest cost attached to your furry friend. While it may not seem expensive per meal, it adds up over time. Providing your animal with a good diet helps to avoid costly medical bills in the future,  so it makes sense to budget for pet food like you would for your own groceries. 

The average annual cost of pet food is £200-400. Quality is important for your pet’s health, so relying on cheap options can be risky. However, you can reduce costs by controlling portions, making food at home, and using the RSPCA’s pet cost calculator to plan ahead. 

It’s very important to research pet types and breeds before bringing them home. Some breeds are prone to medical complications that require special food, which can increase the cost of food dramatically. 

Pet training

When budgeting for a new pet, particularly a dog, it’s common to forget about training costs. Owning a pet with behavioural problems can be really difficult, so it’s essential to keep training front of mind. 

Whether you’re adopting an adult from a shelter, or bringing home a puppy, training your dog is a crucial responsibility as a pet owner. Sessions can cost anything from £20-70, depending on whether you choose classes or one-to-one training, so it makes sense to budget for it.

If you can’t afford regular sessions or classes, you can find free training resources online, like YouTube videos from dog behaviourists. Alternatively, Google help near you or use resources like DogsTrust. Your dog’s temperament will be more important than its appearance, so research different breeds whose behaviours best suit your lifestyle.

Pet toys

A bored pet can be a destructive one, which can be costly for your home. Spending time playing with your pet is a great way to bond with them, and it can prevent destructive behaviour like scratching or chewing furniture. Pet toys help to keep animals engaged and relieve stress and anxiety (for both of you!). 

Durable toys last longer, especially for bigger animals, so it’s worth investing in good quality toys, to avoid buying cheap and buying twice. Chews and treats can help with training and keep your pet stimulated, so include them in your monthly budget. 

Create a pet emergency fund

 According to the PDSA,  the lifetime cost of owning a dog can be anywhere from £5,000 to £15,000, while cat ownership can set you back more than £10,000. These costs span a 10-15 year period, and they don’t include vet fees for medical emergencies. 

A pet emergency fund is a pot of savings you set aside to cover any expensive surprises relating to your furry friend. While pet Insurance is a great option,  pet emergency funds can give you extra peace of mind. And, if you never need to use it for your pet, you can boost your finances by reinvesting it.

You can hold your pet emergency fund in a separate account to your other finances and savings so that you know exactly how much you have.

Save for your new pet and build your credit score

Now that you know how much pet ownership costs — and how to protect your pet from the unexpected — you might be thinking about building some savings before bringing your new furry friend home. 

Did you know that your savings can grow your credit score? Join Loqbox and we’ll help you build a savings habit you can easily stick to.  As you make your savings payments, we’ll report them to the main credit reference agencies (CRAs): Experian, Equifax and TransUnion. 

Improvements to your credit score are not guaranteed.