Aug 14, 2026
Follow us on Google for more Money.ca news
Add us on Google
While we adhere to strict editorial guidelines, partners on this page may provide us earnings.
Canada's fertility rate fell to 1.25 children per woman in 2024, a record low that puts the country in the same “ultra-low fertility” bracket as Japan and Italy, according to Statistics Canada. At the same time, younger Canadians are spending record amounts on a very different kind of family member: their pets.
“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 that record low of 1.25 children per woman in 2024 — the lowest since Statistics Canada began collecting data more than a century ago. That's well below the 2.1 replacement rate needed to sustain a population without immigration. In that same period, about 65% of Canadian households owned at least one pet, according to Mintel.
Thanks for subscribing!
The best of Money.ca delivered weekly.
By signing up, you accept Money.ca Terms of Use, Subscription Agreement, and Privacy Policy.
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. 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 — a 2017-dollar figure that climbs past $350,000 once adjusted for today's 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.
Advertisement
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 — the 43% figure and the “pet economy” framing check out against Harris Poll's own November 2024 release. That's American data, but a comparable Canadian data point tells a similar story: Statistics Canada reports that as of 2024, 51.1% of Canadian women aged 20 to 49 were not mothers, with childlessness highest among women in their 20s.
Must Read
- Are you paying too much for car insurance? Here are 3 clever ways to slash your monthly bill
- Here are 5 'must-haves' that Canadians constantly overpay for. How many of these are sabotaging your budget every single month?
- Here are the 5 biggest differences between rich and poor Canadians — which side do you fall on?
Join 19,000+ readers and get Money.ca’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
What pet ownership actually costs in Canada
Here's the catch: Pets aren't cheap, and their costs have been rising sharply. According to Rover's 2026 True Cost of Pet Parenthood report, dog owners in Canada can expect to spend between $34,767 during the median lifetime cost of a medium sized dog, and $31,955 for the average cat.
Bringing home a new dog costs between $2,055 to $4,570 in upfront expenses, and Rover's data shows dog-related costs climbing as much as 18% year over year (cat costs climbed even more — up to 41%), driven in part by rising veterinary bills for office visits, preventatives and vaccinations.
The Ontario Veterinary Medical Association (OVMA) estimates annual veterinary care alone for a dog averages around $1,350, not including emergency visits. Emergency vet bills, dental cleaning and professional dog walking can add between $1,525 and $6,680 more per year.
And yet, only about 3.8% of pets in Canada are covered by pet insurance, according to the 2026 Global Pet Insurance Barometer — among the lowest penetration rates of any country tracked, well behind Sweden's 91% and the U.K.'s 25%. That means the vast majority of pet parents are one emergency visit away from a significant financial surprise.
Advertisement
The real cost of unexpected vet costs. Despite the potential savings, pet insurance penetration in Canada remains low — estimated at under 5% of pet owners. That means the vast majority of Canadians are self-insuring, which works fine — until it doesn't. If you're weighing insurance against a dedicated emergency fund, consider this: A single surgery can cost $3,000 to $8,000. To protect your finances, most financial advisors recommend a minimum emergency fund of $2,000 to $3,000 for pet owners without pet insurance. Instead of absorbing big, unexpected bills all at once, Fetch Pet Insurance helps cover up to 90% of unexpected vet bills. Get a free, no-obligation quote in just 3 minutes with Fetch Pet Insurance and rest easy knowing your fur-baby and your finances are protected.
Gen Z is changing the game
Gen Z is rapidly closing in on millennials as Canada's biggest pet-owning generation, and early signs suggest they're spending differently. A Talker Research survey conducted for the pet insurer Lemonade found that Gen Z pet owners in the United States spend a monthly average of US$178 (C$250) on their pets — more than any other American generation — while also being among the most likely to carry pet insurance.
Statistics Canada reports that as of 2024, 51.1% of Canadian women between the ages of 20 and 49 were not mothers, with 31% of women aged 20 to 29 who are currently without children saying they “definitely” or “probably” don't want them — a trend that lines up with the generational shift toward pet parenthood described above.
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. Just 3.8% of pets in Canada are currently insured, 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 the total lifetime cost. The median lifetime cost of a medium sized dog is $34,767 and $31,955 for the average cat.
The bond Canadians share with their pets isn't going anywhere, and it doesn't have to come with financial surprises. Before bringing home a new dog or cat, build a dedicated emergency fund, price out pet insurance while your pet is still young and healthy since premiums climb with age, and budget for the full lifetime cost rather than just the first year. A little planning now is the difference between loving your pet and going into debt for it.
You May Also Like
- This 7-step plan from Dave Ramsey is designed to help you ditch debt, save more and build wealth — here’s how it works
- Prioritize these 4 critical investments and watch your net worth skyrocket
- Here are 8 solid money moves that could free up real cash every month — here's where to start
- Millionaires under 43 are reshaping investing — just 25% of their portfolios are in stocks. Here’s where their money is going
The most expensive financial mistakes are often the ones you don't see coming. Join 19,000+ Canadians who get the money moves, risks and opportunities shaping their finances — delivered free each week. Subscribe now.
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.
