The Future of Pet Ownership: How Rising Costs Are Shaping Budgets

New research fromHealthy Paws Pet Insurance andMoney.comfinds Gen Z owners are twice as likely as Baby Boomers to have pet insurance — and suggests that awareness, not affordability, is the biggest barrier to broader adoption.

SAN JUAN, Puerto Rico, Sept. 30, 2026 /PRNewswire/ -- Rising veterinary costs are reshaping who can afford to own a pet in America — and how younger generations plan for it. That's according to the third installment of a year-long research series from Healthy Paws Pet Insurance and Money.com, which has surveyed more than 3,000 U.S. pet owners in 2026 to track how the economics of pet ownership are shifting.

The new study finds that 45% of Gen Z pet owners spent $2,000 or more on their pet last year, compared with just 15% of Baby Boomers. Rather than being priced out, many younger owners are responding by treating pet ownership as a financial-planning decision from the start — budgeting, saving and insuring earlier than previous generations did.

"Across all three of our studies this year, one theme has held constant: the cost of caring for a pet has fundamentally changed, and it's changing who feels equipped to take one on," said Mike Ayers, executive editor of Money. "What's new in this data is generational. Younger owners aren't walking away from pet ownership because of cost — they're planning around it in ways older generations never had to."

The findings follow two earlier 2026 studies from Healthy Paws and Money.com: Soaring Pet Costs Are Pushing Household Budgets to the Limit, which found the average pet owner now spends more than $4,000 a year on routine care, and Love vs. Limits: The New Economics of Pet Care, which found that 76% of owners have a cost threshold at which they'd decline recommended veterinary treatment. Together, the three studies form the most comprehensive look to date at how rising vet costs are reshaping pet ownership in the U.S.

Key statistics at a glance

• 45% of Gen Z pet owners spent $2,000 or more on their pet last year, compared with 15% of Baby Boomers.
• 28% of Gen Z owners say pet ownership has influenced their financial planning or savings goals, compared with 10% of Baby Boomers.
• About half of Gen Z owners currently have pet insurance, compared with roughly 1 in 10 Baby Boomers.
• 56% of Gen Z feel financially prepared for a serious illness or end-of-life vet bill, compared with 36% of Gen X and Baby Boomers.
• Only 18% of uninsured Gen Z owners cite cost as the reason they lack coverage — compared with 41% of Baby Boomers — while 22% didn't know pet insurance existed and 28% simply hadn't gotten around to it.
• 60% of all pet owners say pet ownership is becoming a luxury that lower-income households can't afford.
• 55% of pet owners say rising costs have made them less likely to get another pet, rising to 61% of Millennials.

Pets are becoming a financial-planning priority for young owners

Younger generations are increasingly treating pet ownership less like a spontaneous addition to the household and more like a recurring line item that requires advance planning.

Gen Z owners are nearly three times as likely as Baby Boomers to say owning a pet has shaped their broader financial planning or savings goals (28% vs. 10%). That planning mindset shows up in how prepared they feel for a worst-case scenario: 56% of Gen Z owners say they feel financially prepared for a serious illness or end-of-life cost for their pet, compared with 36% of Gen X and Baby Boomer owners. Nearly a quarter of Gen Z owners describe themselves as "very prepared," with savings or insurance specifically set aside for that purpose.

Pet insurance adoption tells a similar story. About half of Gen Z pet owners currently carry a policy, compared with roughly 1 in 10 Baby Boomers — a gap that suggests insurance has become a default consideration for younger owners in a way it never was for previous generations.

Insurance changes both affordability and treatment decisions

The data suggests coverage does more than reduce out-of-pocket costs — it changes the decisions owners are willing to make at the vet's office.

Among currently insured owners, 72% feel prepared for a serious pet-health expense, and 70% of current or former policyholders say insurance covered at least part of their most recent significant vet bill. Perhaps most notably, 47% of currently insured owners say they would pursue every recommended treatment regardless of cost — roughly double the 24% of owners who have never had insurance who say the same. Gen Z owners are more likely than older generations to say they'd pursue all recommended care, regardless of insurance status.

Why don't more young pet owners have pet insurance?

Conventional wisdom suggests cost is the main obstacle keeping younger, often lower-income pet owners from buying insurance. This study finds otherwise: for Gen Z, the bigger barrier appears to be awareness, not affordability.

Among uninsured Gen Z pet owners, 22% say they simply didn't know pet insurance existed, and another 28% say they haven't gotten around to considering it. Only 18% cite expensive premiums as their reason for going without coverage — compared with 41% of Baby Boomers, for whom cost is the dominant barrier.

That gap may be closing quickly: 39% of uninsured Gen Z owners say they're likely to buy a policy within the next year, compared with just 16% of Baby Boomers.

Methodology

All three surveys here were conducted by Morning Consult on behalf of Money.com and Healthy Paws Pet Insurance between January and March 2026, among a national sample of 3,132 U.S. dog and cat owners across the surveys. Respondents were required to own at least one dog or cat to qualify for participation. Data was weighted to be representative of U.S. dog and cat owners based on key demographic factors, including generation. Results have a margin of error of plus or minus 2 percentage points.

This is the third study in a 2026 research series from Healthy Paws Pet Insurance and Money.com examining the economics of U.S. pet ownership. Read the first two installments: Soaring Pet Costs Are Pushing Household Budgets to the Limit and Love vs. Limits: The New Economics of Pet Care.

About Healthy Paws Pet Insurance

Healthy Paws, a Chubb company, is a leading provider of pet health insurance in the United States, dedicated to helping pet parents give their pets the best medical care possible. Founded in 2009, Healthy Paws offers a simple, transparent plan that covers new accidents, illnesses, cancer, emergency care, genetic conditions, and more. With an easy-to-use mobile app, fast claims processing, and a customer-first approach, Healthy Paws delivers a seamless and compassionate experience. As part of Chubb, a world leader in insurance, Healthy Paws is backed by exceptional financial strength and industry expertise. Healthy Paws pet insurance products are offered through Chubb Insurance Solutions Agency Inc. (CISA) (California license no. 0D12120). Learn more at www.healthypawspetinsurance.com.

About Money.com

Money was founded in 1972 as a print magazine and today is read by more than 50 million people each year, and more than 600,000 daily through its newsletters. Money is a part of Money Group, LLC., located in San Juan, Puerto Rico. Its editorial mission is to give readers unbiased insights into the best ways to approach your financial life.

SOURCE Money