Natallia Smith
(TruWealth Advice)
Sharing love with a pet brings unquantifiable joy. They become part of our family unit, improve our health and happiness and teach us valuable life lessons. In addition, studies show that children who care for pets have higher self-esteem and increased cognitive development and social skills. But there are financial costs involved to consider when you’re thinking about adding a dog, cat, or any other animal, to your family.
While it may not seem a ‘typical’ question to ask your financial adviser, it’s worth a chat to ensure you are aware of the financial implications of owning a pet.
In our current pandemic world, more and more people are buying pets, particularly dogs. In 2019, the American Pet Products Association estimated that 85 million US households owned a pet; 18 months later, this number has jumped by 11 million homes. Restrictions in Melbourne during the past year have made it almost impossible to buy a dog. Demand, and prices have increased dramatically. Our need for companionship is at an all-time high as we navigate the strangeness brought about by Covid-19.
Owning a pet comes with significant financial responsibility
Unless you fall in love with a rescue dog, purchasing a dog from a breeder is expensive. Cavoodles, for example, are currently selling for anywhere from $5K to $9K in Australia. And that’s just the first step. Dr Bronwyn Orr, scientific officer for Companion Animals at RSPCA Australia, says:
“There are inherent costs associated with responsible pet ownership, including providing appropriate food, shelter, enrichment and vet care. These are unavoidable and should be considered prior to bringing a new pet into the home.”
Being well prepared avoids nasty financial surprises. Pet owners need to factor in the lifetime costs of:
Setting up your home
Registration
Grooming
Vet care – vaccinations and emergency
Training
Boarding (if your pet can’t go on holidays with you)
Proper nutrition
Toys
According to a 2016 survey by Animal Medicines Australia, Australians spent $12.6 billion on pet products and services, with more than a third of that spent on food. The average yearly costs of ownership, as determined by this survey, are:
$1475 for dogs
$1029 for cats
Your adviser can assist you to make the right decision
Initial purchasing costs
They will help you determine the best way to pay for your new pet. Together, you can explore whether to dive into your savings, redraw from your mortgage, withdraw from an investment or whatever means suits your financial circumstances, without causing you to lose money on fees or interest.
On-going Budget
Adding a pet to your family will have a significant impact on your weekly expenses. Your adviser can review this to ensure that your budget is set up to continue maintaining a healthy financial position. Working through this will allow you to make an informed decision and clearly determine what type of pet is best for your circumstances.
A recent public opinion poll showed that 56% of dog owners wouldn’t sell their dog for a million dollars. There are many physical and psychological benefits of pet ownership and, in many cases, these outweigh the financial costs. But, as always in the world of finances, it’s best to do your homework and be fully prepared when you make a significant and long-term life decision.
There is some similarity between owning a pet and working with a financial advisor. While the initial setup may seem expensive, and the benefits are not immediately tangible, over time you will see and feel the positive results.
Need to talk over any life decisions? Please contact TruWealth on 03 8648 6534 or email contact@truwealthadvice.com.au