Dogs bring love and devotion, but do they come with financial benefits too? When you’re forking over twenties for dog food and covering breath-taking vet bills, it might not seem like that's the case.
Are you actually richer because you own a pet? Let’s take a look at the return on investment (ROI) of man’s — and woman’s — best friend.
The Statistics That Say Yes! Dogs = Dollars
Scientific and financial studies confirm the many economic benefits of dogs — better physical and mental health, less isolation, improved maturity and emotional balance, greater safety, more fun, happier families, enhanced financial savvy, and a hefty contribution to U.S. GDP. That’s a lot of financial good wrapped up in a few furry friends. Well, maybe not a few: 58 million American households own a dog.
This chart from the Human Animal Bond Research Institute (HABRI) tells it all.
Let’s talk about specific ways your dog increases your and your family’s ROI.
Improved Physical Health
Your physical health is likely to be better with a dog than without. The benefits cut across all ages, from kids to seniors. The European Pet Food Industry Federation (FEDIAF) notes that living with a dog results in “improvements in children in terms of their general immune function, especially allergy prevention. Children from dog-owning households are also shown to be more physically active. In adults, dog owners also engage in more physical activity than non-owners and pet owners generally have lower blood pressure, plasma triglycerides, and cholesterol while older adults with pets make fewer visits to their doctor.” HABRI finds that “dog owners who regularly walk their dogs have lower levels of obesity, leading to a $4.5 billion reduction in health care spending.”
ROI: When you are healthier, you have more energy and clearer thought processes to excel at your current job, prospect for a new job, get education or training to improve your salary, or take up a lucrative side hustle. If you go to the doctor less and need fewer meds, you’ll save time and money — and suffer from fewer debilitating medicine side effects. Assuming the HABRI folks are even a little bit close on this and pet ownership really does save the healthcare system $22.7 billion every year, your personal bank account will benefit as well.
Mental Health Benefits
It’s not just your body that gets a boost from your dog. It’s your mind and your emotions, too. The Pet Assure American Animal Hospital Association (AAHA) finds a 76% reduction in stress levels and a 65% improvement in mental health. Dogs help kids, too, offering children a 9% lower probability of having a clinical diagnosis of anxiety. That reduction is linked to $672 million in annual mental health care cost savings. Something as short and simple as petting a dog for five minutes reduces stress. When people are experiencing grief, pet responsiveness offers comfort.
ROI: Finding, affording, and going to a therapist or psychologist is expensive and time-consuming. If your pet can soothe you as many studies show, you can save money in medical bills and in reducing expensive self-soothing habits like drinking and overeating.
Social Connection
Dogs are great ice-breakers — perhaps even more so than babies because you sometimes feel as if you are “bothering” a parent or intruding on their privacy or worse yet, potentially waking a sleeping baby! if you peer into the baby carriage. When you are out in public, it is much easier to speak to other people after you first address their dog. The European Pet Food Association explains that “loneliness is considered one of the biggest social issues of our time, affecting all parts of society and every age and there is a significant body of research showing the powerful role pets can play in reducing the sense of isolation.” The social benefits of owning a dog extend to seniors, too. The Human Animal Bond Research Institute (HABRI) finds that this demographic is healthier because dog ownership reduces social isolation and the loneliness that comes with it, reducing Medicare spending by an estimated $1.8 billion.
ROI: A growing body of research points to social isolation and loneliness as causes of a myriad of expensive health and societal problems. It seems like owning a dog reduces your chances of being impacted by these maladies.
A More Even Temperament
If you get rattled or angry easily, having a pet can help you stay more emotionally balanced. Owning a pet can improve your mood because it’s hard to stay upset when your dog goes in for a cuddle. The bonding that comes with owning a dog releases oxytocin, a hormone that helps reduce anger.
ROI: Who of us hasn’t broken a dish by moving too fast when we are angry; backed into the garage door when we are hurrying, or said something that cost us a deal or a job or a relationship? When being angry or upset results in an incident that costs us money, we really regret the expense. If a loving pet can reduce anger-related mishaps, that will save money.
Enhanced Safety and Trust
Yes, sometimes dogs bite, which would not help your bottom line. But more often, having a dog around makes life safer and helps people trust each other more. The University of Western Australia reports that “dog owners report greater feelings of safety when out walking or at home with their dogs. Also, children who have formed strong bonds with their pets are shown to develop good empathy and concern for others, an important characteristic when growing into adulthood.” When you are home alone, having a dog reduces worry and makes you feel more secure.
ROI: It’s hard to put on price on a feeling of safety. Having a dog could help you feel safe with a lower-end security system. Your dog can help you connect meaningfully with your neighbors, which helps you develop a network of assistance that makes your life better and saves cash by sharing tools, ideas, and referrals.
Resilience in the Face of Change
Life brings change, and that can be stressful. Froma Walsh in “Human-Animal Bonds II: The Role of Pets in Family Systems and Family Therapy” reminds us that “through disruptive transitions and in weathering prolonged adversity, animals provide socioemotional support that facilitates coping, recovery, and resilience. When members are feeling vulnerable, lonely, or depressed, others may be preoccupied, distant, or uncomfortable in relating. Bonds with pets offer comfort, affection, and a sense of security. Pets can facilitate adaptation with tumultuous life changes.”
ROI: Unresolved stress can wreak havoc on family finances — a DUI, a child’s descent into drug addiction; a gambling habit can divest your family of tens of thousands of dollars. Being unable to grow as a person or pursue a career keeps you from earning what you might in better emotional situations.
Affordable Entertainment
It might not be that interesting to go to a park by yourself, but if you bring your dog, it can turn into a free and fun afternoon. The AAHA points out that “pets can be extremely entertaining without even trying or knowing they are doing so, and without any special training too. Just think about watching your pup chase his tail that always seems to stay one step ahead of him. Their antics instantly make us laugh.”
ROI: Everyone wants to have fun, but entertainment can be expensive. A dog can help you save big bucks on having a good time.
Stronger Families
Owning a dog strengthens marriages and families. Walsh notes that “couples with dogs had greater well-being, and those with the highest attachment to their dogs and who confide in them fared the best.” Sometimes after a tough day at work, your dog is a better confidant than your spouse, at least at first, because you know you’ll get the kids of “enthusiastic greeting, affection, and nonjudgmental support” you need right out the gate.
ROI: if your dog helps stave off divorce and keep your family intact, $72 for Heartgard is a small price to pay.
Teach Financial Responsibility
On a practical note, caring for a pet enhances financial responsibility. OneOp shows that “learning DIY skills can help save money on grooming expenses; learning how to compare costs across various stores for dog food and other pet essentials and keeping in mind sales, coupons, and buying things second-hand [can bolster financial ingenuity]; and saving for routine vet care and unexpected pet expenses in a pet emergency fund can teach short and long-term savings.”
ROI: Outside of being a parent, owning a dog probably brings the greatest responsibility for caring for a living thing. It’s not easy to regularly care for a dog and to balance the costs of doing so against your income. A dog lets you practice the basic financial skills that will take you far in life.
Contribute to the Economy at Large
If you feel as if your financial health partially mirrors that of the general economy, owning a pet is a great way to contribute. The Pet Advocacy Network finds that the “U.S. pet sector contributes $260.5 billion directly and indirectly to the U.S. economy” through creating jobs, improving GDP, and contributing to taxes; 84.9 million households in the U.S. have at least one pet. And you are one of them, functioning as a small part of the robust U.S. economy.
ROI: When the tide rises, all boats rise. The healthier our economy, the stronger the chances are that you’ll be doing well, too, and enjoying a better ROI on your contribution to the nation’s economy. Meanwhile, you’ll be enjoying the love and companionship of your dog.
Your Pet Portfolio Is Skyrocketing — The Financial Benefit of Owning A Dog
Owning a pet isn’t cheap. James McWhinney of Investopedia points out that 128 million American pet owners spent $147 billion on their pets in 2023. That’s an average of $1,148 per pet owner. That’s not an insubstantial amount, but let’s put it in perspective. A DUI costs upwards of $10,000; medical bills for physical and mental illnesses can reach into the thousands, substance abuse rehab can cost $30,000, a divorce sets you back thousands, and combatting boredom with paid entertainment has no limit. Seems like your $1,148 annual investment yields quite a satisfactory ROI.
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Read more here about how pets enrich our lives.
Wondering about other strong emotional ROIs? Check out The Return on Investment When Millennials Live at Home.
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