This article appeared in SoFi's On the Money newsletter. Not getting it? Sign up here.

The joy of pet parenting is endless. But lately, so are the costs.

As the high price of vet bills, food, and pet care stretch already thin household budgets, new data from Bank of America suggests the financial burden may be forcing some people to avoid pets entirely.

"Affordability is playing a larger role in decisions to take on the responsibility of pet ownership," economists at the Bank of America Institute wrote in this new report.

The think tank, which extracts insights from the bank's customer spending and deposit data, found that the share of households with a pet declined both this year and last — with the sharpest drop among lower-income and younger households.

Dogs in particular may be bearing the brunt of the pullback. The most recent figures from the American Society for the Prevention of Cruelty to Animals (ASPCA) show annual adoptions from shelters and rescues dipped slightly in 2024 and 2025.

Much like groceries and other everyday items, prices for pet food and services like grooming and training have jumped significantly over the past five years, according to data from the Bureau of Labor Statistics.

Vet care is proving particularly painful. Vet bills rose more than four times faster than pet store spending in April, according to Bank of America. Data from Healthy Paws Pet Insurance shows the typical vet claim last year ran $392 — 32% higher than in 2020.

All told, routine care for a cat or dog now averages nearly $4,300 a year, suggesting lifetime costs of well over $50,000, according to Healthy Paws research. That's enough for a down payment on many houses.

So what?

If you're thinking about bringing home a new furry friend — or already have one — here are some strategies to help you cut costs:

Switch to store brand food. Private label brands may not be the trade-down that you think. As inflation squeezes household budgets, pet food manufacturers are working more with private labels, and the selection from retailers such as Kroger and Pet Valu is improving, according to market research by Cascadia Capital. For instance, Kroger's Abound line includes more nutrient-dense ingredients and probiotics.

Automate your deliveries. More than a third of pet owners spend $100 or more per month on food and treats alone, according to a recent Healthy Paws survey. Setting up regular, automatic deliveries from retailers like Chewy or PetSmart can get you recurring discounts on items you routinely buy.

Buy in bulk. Along the same lines, purchasing larger quantities of food, treats, or cat litter often drops the cost per ounce. Just make sure you have the storage space and know you'll use it before it goes to waste.

Groom at home. Depending on your pet and breed, grooming can be a monthly necessity. Going to a professional groomer can run into the hundreds of dollars per visit, so even if you have to invest in grooming tools, doing those shampoos and nail trims yourself could be a smart tradeoff.

Build a savings fund for medical bills. A sudden mishap can wreak havoc on your budget, and a 2024 LendingTree survey found that 37% of pet owners have gone into debt because of their pets. Instead of leaning on a high-interest credit card, start setting aside a little bit each month in a high-yield savings account.

Weigh the value of pet insurance. Most pet insurance policies don’t cover pre-existing conditions (a reason not to wait for problems to arise.) But depending on your pet’s age and potential risks, insurance could be worth the money for some pet owners. A NerdWallet comparison of popular plans shows accident and illness policies are the most typical, though you can buy coverage for vaccinations and wellness exams as add-ons.

Related Reading

Budgeting For a New Dog (SoFi)

The Most Expensive States to Own a Dog in 2026 (MetLife)

52% of U.S. Pet Owners Skipped or Declined Veterinary Care (Gallup)

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.

SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

OTM20260605SW