Pets are family, and their care can sometimes stretch your budget. A dedicated pet savings account can make a real difference by separating pet expenses from your everyday finances. This specialized account ensures that funds are readily available for routine care, emergency vet visits, or those unexpected expenses that come with having a furry friend. In this post, we share six practical tips to help you set up and maintain a pet savings account, so you’re always prepared to give your companion the care they deserve.
Table of Contents
1. Shop Around for a Pet-Specific Savings Account
It’s important that your pet savings account be separate from any other account. This sets clear boundaries for you that you’ll have to recognize and work with. One option is to open a second savings account at your primary bank or even a different financial institution. That said, the concept is so prevalent these days that many banks offer pet-owner-tailored savings accounts. Pet-specific accounts are often better because they have limitations while also including perks, such as discounts on pet medicines.
2. Start Your Account Before You Own
It’s never too late to start your pet savings account. Whenever you get the impetus to do it, it’s the right time. That said, the best time to do it is before you actually commit to pet ownership. You can use the account to save the money to purchase the pet. The account can include all the funds you’ll need during the puppy or kitten phase, which can be expensive. You’ll also have a nice reserve set aside to handle any pet surprises that may come your way.
3. Estimate a Budget and Set Goals
Decide how you’ll use your account. Will it be for all pet necessities or just emergencies? Either approach is fine. What’s important is that you have a clear approach. From there, estimate how much you expect to spend each year. The next step is to set contribution goals for each week or month. Make sure the core goal is enough to afford necessities. Stretch goals should reach your annual estimated costs over a 12-month period.
4. Consider Pet Insurance
Some pet owners approach pet insurance and a pet savings account as an either-or proposition. It doesn’t have to be. The right pet insurance plan can help make your savings go even further.
5. Track Your Expenses
Track your pet-related expenses week to week, month to month, and year to year. Know what you’re paying for necessities, such as food and regular vet visits. Recognize what you’re spending on impulse purchases too, and adjust your goals and contributions accordingly.
6. Consistent Saving is the Key
As with any savings account, the key to a successful pet savings account is consistency. If you choose to put money in every week, do so without fail. Better yet, set up an automatic transfer from a primary account to your pet savings account. Everyone has rough patches from time to time. If you find yourself having a bad week or month, you can lower your contribution, but don’t skip it.
Having a savings account to handle pet expenses might seem a bit much, but when a pet emergency occurs, you’ll be glad to have it.