Puppy in the Window

One of my colleagues recently walked into a local pet store to buy a gift for a friend’s new puppy. While she was there, she saw an adorable little bulldog puppy for sale and just had to give it some snuggles! As she was loving on the puppy, she asked the store associate how much the puppy cost and was told his fee was $5,200. When she told the associate that amount was over her budget, she was immediately handed a pamphlet with information on how to finance the purchase of the dog. She politely declined and gave the puppy back to the associate in hopes another family would come along and give her a loving forever home. When she told me this story, I was in shock first at the price of the dog and second, that a store would offer financing (i.e. consumer debt) to purchase an animal. I knew I had to find out more about how this financing worked because I was completely flabbergasted at the idea that people would make monthly payments just to buy a pet.

 As I looked into the terms of the financing offer, I found that if the buyer paid off the puppy purchase in the first 3 months, there was no interest accrued. However, if the animal’s purchase price wasn’t paid in full within 90 days, the interest rate skyrocketed to 24.98% annually! The terms of the financing plan also indicated a consumer has up to 36 months to pay off their balance. Using the price of the bulldog puppy mentioned above ($5,200) and assuming someone took the full 36 months to pay off the purchase at 24.98% annual interest, monthly payments would be around $207. This equates to a total amount of over $7,400 paid for the $5,200 puppy!

 In addition to the $207 per month being paid to finance the puppy purchase, imagine all the other costs that go along with having a new puppy at home. There will be veterinarian bills for things like checkups and required immunizations. In addition, there will be the cost of flea and tick medications, heartworm preventatives, food, toys, treats, training classes, leashes, collars, harness, bowls, crates, and more. In addition, for those wanting to insure against future potential high costs related to accidents (like a swallowed sock or broken bones) or medical issues (a need for life-saving surgery), pet insurance is another good line item to consider adding to your pet budget.

I’m telling you this story as a very long way of saying, “If you can’t afford to pay cash for the pet, then it’s likely you can’t afford the pet in the first place.” I’m not here to shame anyone who has purchased a pet instead of adopting. I did so myself from a reputable family breeder because I love dogs but am allergic to most of them. However, for those who are wanting the companionship of a pet, don’t have allergy issues, have the time and patience for it, and can fit the ongoing costs of owning any kind of pet into their budget, just keep in mind there are lesser expensive ways to go about it. Consider adopting from a local shelter or looking into breed-specific rescues if you’re looking for a specific kind of pet. You may have to be more patient in the process, but financially speaking, it will be better than paying hundreds or even thousands in interest on a payment plan to buy an animal from a pet store. Many shelters and rescues are overloaded with animals that need a loving forever home. If you can’t afford a pet right now but still want to get some kitten snuggles or pet a dog every now and then, consider volunteering at a local animal shelter until you’re financially ready. We’ve linked below to some of our favorites around town.

 https://www.mistyeyes.org/adoptionprocess

https://www.indy.gov/activity/adopt-a-pet

https://indyhumane.org/adopt/dont-forget-about-me/

- Margaret Gooley, CFP®, CDFA®, Worley Erhart-Graves Financial Advisors