Mar 9, 2026
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It’s no secret that pets are important to Canadians. Research confirms they bring real benefits for your physical, mental and social well-being. But something bigger is happening now — younger Canadians aren't just loving their pets more, they're actively choosing them instead of children, and they're spending record amounts to keep them happy.
"We're witnessing a clear generational shift as millennials and Gen Z increasingly place their pets' well-being above their own personal expenses. In some cases, pets are not only a priority, but also becoming a meaningful alternative to the idea of having children," says Dr. Rebecca Greenstein, owner of Kleinburg Veterinary Hospital and a member of the Rover Pet People Panel. "While the lifetime costs of a pet can potentially be overwhelming, the bond people share with their pets is stronger than ever."
A generational shift — backed by numbers
Canada's total fertility rate hit a record low of 1.25 children per woman in 2024, the lowest since Statistics Canada began collecting data more than a century ago (1). That's well below the 2.1 replacement rate needed to sustain a population without immigration. In that same period, 65% of Canadian households now own at least one pet (2), with millennials and Gen Z among the most likely demographics to have one.
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A new Angus Reid Institute survey of 1,300 Canadians under 50 found that among those who either plan to have children or may still do so, fully half say they've already delayed having kids longer than they would have liked. And that figure rises to three out of four (74%) among Canadians aged 35 to 44 (3). Financial struggle is the most-cited reason.
With Statistics Canada estimating the cost of raising a child to age 17 at approximately $293,000 for a middle-income family (4) — a figure that rises sharply when adjusted for current housing and inflation costs — it's not hard to understand why a growing number of younger Canadians are looking at a pet instead and seeing it as the more financially manageable form of family.
A 2024 Harris Poll survey of 2,000 Americans found that 43% of respondents now prefer pets over children, with Gen Z and millennials citing pets as more manageable and less financially burdensome (5). While that's an American survey, Canadian trends closely mirror this shift.
Be prepared for when the unexpected happens. Protect your furry family member with Petsecure — they offer comprehensive coverage for up to 80% of vet bills.
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The financial reality of pet ownership in Canada
Here's the catch: pets aren't cheap, and their costs have been rising sharply. According to Rover's cost analysis, dog owners in Canada can expect to spend between $965 and $4,020 annually on essentials alone — a figure that jumped significantly from the previous year (6). Cat owners aren't off the hook either, with annual essential costs ranging from $930 to $2,400.
Rover's 2025 True Cost of Pet Parenthood report found that bringing home a new dog now costs between $1,750 and $4,655 in upfront expenses — 17% more than in 2024, driven in part by soaring veterinary service costs, which have risen up to 50% for office visits, preventatives and vaccinations (7).
Overall, Canadians' spending on pets increased by about 23% between 2021 and 2024 to 2025, with the average annual cost of owning a dog estimated at approximately $3,020 in 2024 (8). In 2024, Canadians spent over $4.4 billion on retail dog and cat food alone.
Despite the joy pets bring, many prospective pet owners underestimate the financial commitment. The Ontario Veterinary Medical Association (OVMA) estimates annual veterinary care alone for a dog averages around $1,350, not including emergency visits (9). Emergency vet bills, dental cleaning and professional dog walking can add between $1,525 and $6,680 more per year.
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And yet, only 3% of Canadian pet owners carry pet insurance (10) — meaning the vast majority of pet parents are one emergency visit away from a significant financial surprise.
Gen Z is changing the game
Gen Z is rapidly closing in on millennials as Canada's biggest pet-owning generation, and they're spending differently. A Talker Research survey found Gen Z pet owners spend a monthly average of $178 on their pets — more than any other generation — while also being the most likely (42%) to carry pet insurance (11). A whopping 70% of Gen Z pet owners have two or more pets, reflecting both their emotional commitment and a lifestyle increasingly centred around their animals.
The humanization of pets is accelerating: 50% of Gen Z now describe their pets as their children, per recent survey data (12). Meanwhile, Statistics Canada reports that as of 2024, 51.1% of Canadian women between the ages of 20 and 49 were not mothers (13), with 31% of women aged 20 to 29 who are currently without children saying they "definitely" or "probably" don't want them.
Read more: The ultra-rich are bailing on volatile stocks right now — these 4 shockproof assets are their new safe havens
Smart financial planning for pet parents
Whether you're considering your first dog or already deep in cat food bills, responsible pet ownership starts with a real budget. Here's what financial planners recommend:
- Build an emergency fund. Set aside between $2,000 and $5,000 specifically for unexpected veterinary costs. A single emergency visit can exceed $4,000.
- Look seriously at pet insurance. Only 3% of Canadians currently have it, yet even a basic policy can dramatically reduce out-of-pocket costs for accidents and illnesses.
- Budget for the full picture. Food, toys, licensing, grooming, dental cleanings and boarding add up fast. Use Rover.com's annual cost estimator as a baseline.
- Consider total lifetime cost. Rover's 2025 report estimates a dog's lifetime costs at approximately $34,550 and a cat's at approximately $32,170 (14).
The bond Canadians share with their pets is undeniable — and it's not going anywhere. But as pet costs continue to climb and younger generations reshape what family looks like in Canada, the most loving thing a prospective pet parent can do is go in with eyes wide open and a solid financial plan in hand.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Statistics Canada (1, 4); Mintel (2); Angus Reid Institute (3); PetFood Industry/Harris Poll (5); Global News: (6, 13); Rover.ca (7, 14); Made in CA (8, 10); Ontario SPCA (9); Roch Society (11, 12)
Disclaimer
The views and information shared in this article are based on my personal experiences and general understanding. The author is not a licensed insurance agent, broker, or advisor, and nothing in this piece should be interpreted as insurance advice or a recommendation.
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Amy Tokic is an SEO content editor for Money.ca. She holds a B.A. in Communications from the University of Windsor. Amy is an award-winning author and has been writing professionally for 15 years, publishing articles in the lifestyle and health sectors. In her free time, Amy loves perusing used book and record stores, and chasing squirrels with wild abandon (a habit attributed to spending too much time with her pooches).
Managing Money • Mar 20
