5 Reasons Your Pet Needs a Savings Account
Updated on
Pets are family. Furry or fluffy, scaly or feathery, humankind has always domesticated animals for companionship. According to the Smithsonian Magazine, humans have had pets for TENS OF THOUSANDS OF YEARS.
Or is it that pets have had humans for tens of thousands of years??
My cats don’t care about savings or insurance, but they like to be healthy and that costs money. And for us, that’s big money because we have four cats.
Our Family of Pets
Growing up I had hamsters, gerbils, fish, guinea pigs, dogs, cats, rabbits and a bird. I think Stephen King got the idea for his book “Pet Cemetery” from my backyard. Because every one of those animals was buried along the fence that separated our home from the woods.
As an adult, I’ve had dogs, cats and chickens. We even had a guinea pig at one point. Currently we have four cats, Samantha, Sir Arthur Guinness, Sijui and Cholula (Lula). Until a year ago, we also had chickens and a Black Labrador.
We had chickens at our current home and at our other house. The chickens were healthy with bright eyes, perfect combs and shiny feathers. They were gorgeous. They had just grown into adulthood when one day, a neighborhood dog attacked one of the girls. There was only one vet in the area that saw “rare and exotic animals,” even though I live in Seattle, a pretty big city.
Hedwig was my son’s chicken and no way was I going to let her die. So I took her to the vet, a visit that cost me almost $300. I knew it would be expensive, but I wasn’t prepared. That’s when I knew I needed to be prepared financially for out-of-the-ordinary vet visits as well as annual ones.
Having pets is expensive. It’s like having a kid! You have to feed and house them, take them to the doctor, buy them toys and play with them. And that’s just the kids.
5 Reasons Your Pet Needs a Savings Account
- If you don’t have pet insurance, you DEFINITELY need a savings account. How else will you pay for vet care, vaccinations, visits, prescription flea medicine and random vet visits?
- Most insurances require you to pay the vet directly and then submit receipts for reimbursement.
- As your pet ages, it will need more care, and perhaps medicine and specialized foods and supplies.
- If you lose your job and need to depend on your emergency fund, what would you do if your pet need veterinary care? Or food? Or medicine?
- Got a chicken or a lizard? Pet insurance options are limited for these animals.
Park your pet’s money in a high-yield savings account. These accounts pay you more in interest and you can find one that doesn’t charge fees or require minimum balances. Ally Bank is easy to use, has 24-hour customer service, has high interest rates and is FDIC-insured. (If you go with Ally, use my referral code and we’ll each get a bonus!) More money is always good!
The Dog and the HYSA
My friend Angela Briones, creator and host of The Gay Podcast for Everyone, is a lifelong animal lover. She and her partner live in Austin, Texas, and they have a two-year-old Corgi named Dwight. The family buys pet insurance through Seattle-based Trupanion. Dwight also has a savings account. And like all good doggies, his savings are in a high-yield savings account!
Angie once had a cat who was healthy her entire life, but in her last year needed medication costing $300 a month. “It was a big wake-up call in having a pet. They’re your family, and you’ll do anything for them. I wasn’t prepared for that expense at the time.”
A self-proclaimed budget nerd, Angie wanted Dwight to have a savings account. This way, the family is prepared for any eventuality. As a result, “I wanna try to be as financially prepared as possible, even though it still might not be enough (when an emergency arises). Financial stress happens when you just aren’t prepared, so I really want to try to limit that stress as much as possible going forward.”
What do Dwight’s savings cover? “We have a couple YNAB (You Need a Budget) categories in our regular budget for the pup. We have: yearly office visit (his yearly visit for blood work and a check up), emergency visits/deductible. I try to keep it pretty simple.”
Emergency Vet Visits Can Cost Thousands
Angie is right to be concerned about an emergency. According to Money magazine, the average cost of an emergency visit for a pet is anywhere from $250 to $10,000. Your pet’s level of care determines the cost of the visit. Surgery will make the price skyrocket. My kids’ former piano teacher had a Samoyed that swallowed a rock that caused a blockage in the intestines. The cost of surgery? Just over $10,000! She paid out of pocket for this crazy dog’s surgery.
Finally, not all pet insurance covers routine visits. In fact, Trupanion states on its website that they deliberately don’t offer that coverage and instead, states that it’s something people can budget for. If you decide to purchase pet insurance, get a quote and make sure you understand the coverage. My vet has a handy chart at the front desk that shows which insurance companies they work with or that they recommend. It gives information on the type of pet, any deductibles, monthly premiums and more. So if you’re stuck, talk to your vet. They’re the ones best placed to offer you advice, especially since they know your furry friend!
