Rising veterinary costs are changing how US pet owners plan and budget for pet care, with younger owners more likely to prepare for expenses through savings and insurance, according to new research from Healthy Paws Pet Insurance and Money.com.
The study, released on 30 September, is the third part of a 2026 research series examining the economics of pet ownership. It found that 45 percent of Gen Z pet owners spent at least US$2,000 on their pets last year, compared with 15 percent of Baby Boomers. Meanwhile, 28 percent of Gen Z owners said pet ownership had influenced their financial planning or savings goals, compared with 10 percent of Baby Boomers.
Pet insurance also showed a large generational difference. About half of Gen Z owners currently have pet insurance, compared with roughly one in 10 Baby Boomers. Among uninsured Gen Z owners, 22 percent said they did not know pet insurance existed, while 28 percent had not considered it. Only 18 percent cited premiums as the reason for not having coverage.
The research also examined how insurance affects veterinary decisions. 72 percent of insured owners said they felt financially prepared for a serious pet-health expense, while 70 percent of current or former policyholders said insurance covered at least part of their most recent significant veterinary bill. In addition, 47 percent of currently insured owners said they would pursue every recommended treatment regardless of cost, compared with 24 percent of owners who had never had insurance.
Cost pressures are also affecting future pet ownership. 60 percent of owners said pet ownership is becoming a luxury that lower-income households cannot afford, while 55 percent said rising costs had made them less likely to get another pet.
That gap seems to be closing quickly as 39 percent of uninsured Gen Z owners say they’re likely to buy a policy within the next year, compared with just 16 percent of Baby Boomers.
Morning Consult conducted the surveys for Money.com and Healthy Paws between January and March 2026, covering 3132 US dog and cat owners. The results have a margin of error of plus or minus two percentage points.
“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.”
