Whether you’re thinking about adopting your first pet or getting a playmate for Fido, calculating the costs before bringing home a new furry family member makes financial sense. A recent LendEDU survey found that Americans spend an average of $1,676.76 each year on their pets. While you can prepare your budget for expenses like food, toys, and routine vaccinations, medical costs will likely be the largest and most difficult to predict.

Follow these tips to help you prepare your budget for pet ownership.

Tip #1: Plan for initial expenses.

Buying a puppy or kitten from a reputable breeder can cost as little as a few hundred to several thousand dollars. Litter size, age, DNA profile and more can factor into the initial cost. According to betterpet.com, new pet owners should prepare for upfront costs that may include:

• Microchip: $50
• Bedding: $25
• Vaccinations: $75
• Spaying or neutering: $160
• Essential pet gear (bowls, harness, leash, etc.) $100

Adopting from an animal shelter may help lower initial expenses. The adoption fee may include several wellness checkups, core vaccinations, a microchip, and spaying or neutering. Some shelters lower their adoption fees several times a year through various promotions.

Tip #2: Budget for ongoing expenses.

Once Roscoe or Whiskers is home, you’ll need to cover ongoing expenses. These should be included in your yearly budget for as long as you own your pet. Costs can vary depending on your pet, lifestyle, and preferences. Betterpet.com provides a list of common expenses that include:¹

• Food: $240
• Grooming: $600
• Replacement toys: $70
• Dental cleaning: $175 - $300 ($500+ with anesthesia)
• Routine veterinary care (annual checkups, vaccinations, medications): $100–$300
• Flea, heartworm, and tick preventative care: $300+

If you need an extra set of hands to assist with housebreaking your new pet, teaching it to obey basic commands, or ensuring it gets plenty of exercise, there are other costs to add to your list. New dog parents can expect to pay:

• Training: $40-$250 per session
• Boarding: $20 - $50 per night
• Walkers: $13 to $37 based on length of walk

The final price tag will vary by pet, location, facility, and experience of the trainer or walker.

Tip #3: Consider pet insurance.

Sometimes pets get into serious trouble, requiring urgent medical care. Without a pet emergency fund or pet insurance, covering necessary treatment can be challenging. Pet insurance can provide a financial safety net when considered along with other pet ownership expenses.

A pet insurance policy is similar to a human health insurance policy — you select a plan and an annual deductible, then pay monthly premiums. Most pet policies reimburse between 70% and 90% of eligible costs after you meet the deductible.

Unlike human health insurance, pet insurance usually lets you choose where to get treatment. Whether you use a licensed veterinarian office or urgent animal care facility, upfront payment is required. You’ll need to submit your receipt to the insurance company for reimbursement.

Pet insurance covers a variety of treatments based on the plan you select.

• An accident-only policy covers situations like broken bones, a bite wound or ingesting poison.
• An accident and illness policy is also called a comprehensive policy and is the most popular type. It combines accident coverage with coverage for treating minor to severe conditions — from allergies to cancer — and procedures like surgery and diagnostic testing.
• A wellness policy typically covers routine and preventive care, like vaccinations and annual checkups, and is usually available as an add-on to one of the above policies.

Pet insurance costs vary based on your pet’s breed, species, age, size, and health profile, as well as the type and level of coverage. The average monthly premium for an accident and illness policy is about $32 for a cat and $56 for a dog. Premiums can increase as your pet ages, so consider getting a policy when your pet is young and healthy.

Before purchasing pet insurance, review the policy carefully to understand exclusions, limits, and waiting periods. Ask questions if you’re unclear about what is and isn’t covered. It can also be helpful to talk to your veterinarian about your pet’s health and risk factors to decide if pet insurance makes sense.

While a pet adds expenses to your budget, they can also offer companionship and lower stress levels. By preparing for the costs now, you can enjoy all the fun having a pet brings and focus on building memories with your new furry family member.

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