We’re a nation of pet lovers, with more than half of UK households owning at least one pet in 2021/22 and cats and dogs proving the most popular.
This National Pet Month, we’ve released data showing Monzo customers are so obsessed with their pets, they put £8.9m into savings Pots in February to treat their furry friends. That’s an average of £113 per Pot.
Customers are putting twice as much in their pet Pots than in personal treat funds for health and beauty (for which they save £68 a month on average). Our customers are creating cat Pots at a faster rate than dog Pots; and the average customer deposits £50 more into cat Pots each month compared to dog Pots – £151 for cats and £101 for dogs.
Owning a pet – or several – brings with it endless plus points (hilarious moments, cuddles on tap, companionship, content for social media, the list goes on). But it’s not cheap to care for an animal, keep it healthy and give it the happy life it deserves.
And the rising cost of living’s only making it more expensive. Pet charity PDSA even found almost a fifth of pet owners are cutting back on essentials for themselves to afford their pet’s care.
Here are six ways to manage your money with pets.
Identify your pet’s needs
Step one of getting your money in order with pets is being clear about how much they’re costing you right now. Specifically expenses like their food, litter, toys, insurance, vet and medical bills, grooming, treats, accessories and anything else.
Some questions to ask yourself: How much food are they eating and how often? How often do they need to be groomed? How much litter do they get through and how regularly? How much money are new toys costing you (or would they be just as happy with a cardboard box)? How much is your insurance costing you each month? How much did your last vet bill come to? What medication are they on? What about fees for dog walkers, cat sitters or daycare?
Put these numbers into a budgeting app or spreadsheet, or use categories in Monzo to see how much they add up to. Then reflect on if you can afford it and whether you can cut costs anywhere.
Work out how much you need to set aside
You’ll need to factor your pets into your budget, whether you prefer to do this weekly or monthly is up to you. Pick an amount that works for you based on your pet’s needs and how much you’re already saving for other things, such as long-term goals or your emergency fund.
Get clear on your non-negotiable expenses, such as food and litter. And be realistic about how much you can afford – and are willing – to spend on non-essentials like toys and treats.
Create a space for your pet money
You’ll need a dedicated place to put your pet money so it’s separate from other expenses (like rent and bills) and other things you’re saving for.
Here’s how to create a Pot in Monzo:
Tap on your display photo in the top left corner of the Home tab
Scroll down to the Your Account section
Tap Create a Pot and choose between a Standard or a Savings Pot (an easy access account is advisable if you know you’ll need to make immediate withdrawals)
Name the Pot and add a cute custom image of your pet that will motivate you to keep saving
Put some money in now, or wait until later
Plan for all eventualities
Unfortunately, unexpected vet bills do tend to crop up every so often (even if nothing ends up being wrong, you may still choose to pay for a vet appointment). So, it’s useful to have a sinking fund for surprise expenses.
You could create multiple Pots for the different pet funds you want to build up. For example, one for your sinking fund that covers (hopefully rare) expenses like vet and medical bills, another for regular expenses like food and litter, and one for treats and other nice-to-haves.
This way, you shouldn’t have to dip into your current account or other savings to pay for pet expenses.
Contribute a set amount every week, month or pay day
Once you’ve worked out the amount(s) you need to put aside for your pets, automate your savings by setting up a standing order from your current account into your new Pot(s).
Do this in Monzo by:
Tapping the Payments icon in the menu bar
Tap Scheduled
Tap Add Scheduled Payment
Don't feel bad about dipping into your Pots
Your pet Pots are there for a reason. If your Pot isn’t fixed, you can take money from it whenever you need to spend money on your pet(s). Think about the amount of money in your pet Pots as ever changing, rather than growing consistently.
The aim of having pet Pots is to stop you from dipping into your emergency fund, long-term savings and other Pots for fun things like holidays.
If you’ve created special spaces for pet money – complete with cute custom images to keep you on track – you’re going to be more motivated to pay into them consistently. Your four-legged friends will be grateful.