Pets influence Americans’ financial decisions, AICPA survey finds

Americans who have a dog or cat don’t just love their pets. They make personal financial decisions based on the animals’ well-being, according to a survey conducted for the AICPA.

Almost all — 95% — of the 57% of Americans who have a dog and the 40% who have a cat consider their pets to be family members, according to the survey conducted by The Harris Poll in mid-July. Of those dog and cat owners, 62% have a budget for spending on their pets. And 69% say they’re more likely to cut spending on themselves than on their pets.

“These findings show that Americans view pets as a member of the family and the money spent to care for them is not an afterthought but a core household expense,” Cary Sinnett, director–Personal Financial Planning at the AICPA, said in a news release.

Older pet owners in particular are willing to cut spending on themselves to pay for food, veterinary visits, and other necessities for their dogs or cats, the survey showed. Eighty-one percent of pet owners age 65 and over are likely to do so, ahead of ages 55-64 (73%), ages 45-54 (71%), ages 35-44 (63%) and ages 18-34 (64%).

“For many families, pets provide companionship, emotional support, and stability, so it’s not surprising that some would prioritize their pets’ needs over their own, even during times when budgets are tight,” Sinnett said.

Estate planning with pets in mind

Of the 73% of pet owners who report having a will or trust, 40% said they have included provisions for their pets.

Among those who have a will or trust but don’t include provisions for their pet, the reasons vary for why they don’t:

• 40% said they hadn’t thought of adding their pets.
• 38% said that their family or friends will figure out what to do with their pets.
• 25% said they believe that wills and trusts are meant only for people.
• 18% said they haven’t updated their will or trust since getting their pets.

“Many people overlook what would happen to their pet(s) if they became incapacitated or pass away,” said Erin Itkoe, CPA/PFS, CFP, a member of the AICPA’s PFP Champions Task Force. “Discussing long-term care arrangements for your pet(s) and documenting those wishes in your estate plan benefits not only your pet(s), but the people you’ve selected to care for them.”

AICPA advice

The AICPA’s tips for pet owners include creating a dedicated pet budget and emergency fund; evaluating pet insurance; reviewing estate planning documents; and creating a pet care plan for emergencies.

For more financial tips on pets, visit AICPA’s Financial Literacy Page.

The survey was released ahead of National Dog Day on Aug. 26.

— To comment on this article or to suggest an idea for another article, contact Martha Waggoner at Martha.Waggoner@aicpa-cima.com