What It Really Costs to Own a Dog or Cat: A Guide for First-Time Pet Owners

Deciding to bring a dog or cat into your home is exciting. Before you sign those adoption papers or pick out a kitten, it’s important to understand the financial commitment that comes with pet ownership. Beyond just love and companionship, pets come with ongoing expenses that can add up quickly.

First-Year Costs: More Than Just Food and Toys

The first year of owning a pet tends to be the most expensive. That’s because you have several one-time setup costs in addition to routine care.

For dogs, typical initial costs include things like adoption or purchase fees, vaccines, spaying or neutering, collars, crates, beds, bowls and initial vet exams. Depending on breed and where you get your dog, first-year expenses can range from a few hundred to several thousand dollars. 

Cats generally cost less upfront, but you’ll still need basics like a litter box, carrier, initial vet care, toys and scratching posts, which can add up to hundreds of dollars in that first year. 

According to American Kennel Club, the average first-year cost for a dog can be over $2,000, when you factor in adoption or purchase, medical care and supplies. As for cats, you can expect to spend between $400 and $2,000 in the first year.

Annual Recurring Costs: Food, Vet Visits and More

Once the first year is behind you, pet ownership still has regular expenses:

• Food & Treats: This is generally the largest annual cost. Dogs tend to eat more and may cost upwards of $300–$1,000+ per year, while cat food tends to be cheaper. 
• Routine Veterinary Care: Annual wellness exams, vaccines and preventive medications are essential. Many pet owners budget $100–$300 per year just for routine vet care. 
• Toys & Supplies: From chew toys to litter boxes, expect another $50–$200 annually, depending on your pet’s personality. 

On average, annual costs for dogs can fall between $1,300 and $5,000, while cats typically cost somewhat less, often $700 to $3,500 per year, depending on health, food quality and lifestyle choices. 

Emergency and Unexpected Costs

While routine care is predictable, unexpected medical issues are often the most financially stressful part of pet ownership. Emergencies, from broken bones to sudden illness, can lead to vet bills in the thousands. 

That’s where pet insurance comes into play. Policies vary widely, but typical pet insurance can cost around:

• $30–$70 per month for dogs, depending on coverage and the dog’s age.
• $20–$35 per month for cats. 

Whether pet insurance is “worth it” depends on your financial situation and comfort with risk. Many owners find that insurance helps offset costly emergency treatments and keeps them from making tough choices when their pet needs care. However, insurance premiums and deductibles are another expense to factor into your budget.

It’s important to consider that some insurance policies won’t cover pre existing conditions. For example, if you adopt a dog who has a history of an ear infection in their medical records, your insurance might not cover any future costs associated with ear infections.

A Real-Life Example: How Pet Insurance Can Help

Imagine you’ve had your dog for a few years, and outside of routine vet visits, everything has gone smoothly. One afternoon, your dog suddenly becomes lethargic and refuses to eat. A trip to the emergency vet reveals a gastrointestinal blockage that requires immediate surgery.

Without pet insurance, the cost of emergency diagnostics, surgery, medication and aftercare could easily total $3,000–$5,000 or more, depending on your location and the treatment. For many pet owners, that kind of unexpected expense can be overwhelming.

Now consider the same situation with pet insurance. If you have a policy that covers accidents and illnesses, you may only be responsible for your deductible and a percentage of the remaining cost. Instead of paying thousands out of pocket, your share might be a few hundred dollars, with the insurance company covering the rest. This can relieve financial stress and allow you to focus on your pet’s recovery rather than worrying about how to pay the bill.

While pet insurance doesn’t eliminate all costs, it can act as a financial safety net during emergencies, especially for first-time pet owners who may not yet have a dedicated savings fund for unexpected veterinary expenses.

If you’re still on the fence with pet insurance, you have another option. You can also create a savings account specifically for your furry friend. Just set aside money every pay day, and save up in case of emergencies, or for your routine vet visits. Diamond has club savings accounts that you can open in digital banking, and can be used for your pet fund.

Is Pet Ownership Worth the Cost?

No matter the numbers, it’s clear that owning a pet is more than a one-time purchase, it’s a long-term financial responsibility. Planning ahead can help first-time pet owners avoid surprises and provide the best care for their animals.

While the costs may seem high, many pet owners will tell you that the love, loyalty and joy that come from a dog or cat are well worth the investment. You’ll find that the pet owners at Diamond definitely agree.