Younger generations spend more on their animal companions than older pet owners, with members of Gen Z, those born roughly between 1996 and 2012, spending the most per month on average, new research has shown.

The survey of 1,000 cat owners and 1,000 dog owners, conducted between October 22 and 28 by Talker Research on behalf of digital insurance company Lemonade, found that Gen Z spent an average of $178 per month on their pets in 2024. This was more than the average spent by millennials ($146), Gen X ($115) and baby boomers ($90).

Overall, pet owners were found to have spent an average of $121 a month on their pets in 2024, marking a sharp decline from 2022 when they spent $276 per month. Just under one-third (32 percent) said they set a spending budget for their pet this year, which was a drop from the 52 percent who did so in 2022.

Gen Z took the lead in putting a cap on pet expenditures, with 48 percent having a set budget (compared to 38 percent of millennials) in 2024. Millennials led the way in 2022, with over half (57 percent) having a set budget, compared with 47 percent of Gen Z.

Nearly all (95 percent) of pet owners went over their budget this year. Just 5 percent reported never going over their budget, while 16 percent said they always overspend. This was an improvement from 2022, when nearly twice as many respondents (30 percent) said they always overspent on their pets.

Almost a quarter (23 percent) were reported to have gone into debt to pay for their pet's emergency needs this year, marking a positive drop from 2022, when 42 percent said they'd gone into debt.

Gen Z was also the most likely generation to have insurance and least likely to get into pet debt. The survey found that nearly three-quarters (74 percent) of Gen Z pet owners had insurance that helped foot at least part of the bill for emergency vet visits this year.

Overall, nearly half (54 percent) of respondents had insurance to help cover at least part of the bill this year, with 31 percent saying their vet bill was covered entirely.

"Pet parents may be more cautious with their spending and more apt to save these days, but what we're seeing in the data is they're also being more responsible with their spending," said Dr. Stephanie Liff, a veterinarian health expert at Lemonade. "Whether it's a specific diet or insurance needs, prioritizing these more expensive line items for a pet's wellbeing will likely pay off down the line."

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