Bank professionals, among others, routinely assess decisions in terms of cost-benefit analyses. It’s a workplace skill they commonly apply to everything from product tweaks to tech upgrades to investments in training.
But does that analytic mindset apply after hours? Is a cost-benefit mindset useful on a personal level?
Specifically, could it (or should it) be applied to a decision such as bringing a dog into the household?
Financial Implications of Dog Ownership
There is certainly something innately alluring about owning a canine companion, which is why in America it’s so prevalent. In 2023, Forbes reported that 65.1 million U.S. homeowners have a dog under their roof.
For the banker who doesn’t presently possess a pooch but is considering one (maybe the kids have been begging forever), what are the financial ramifications of going ahead with the idea? And, considering that finances are only part of the equation—there are also those nighttime potty trips and the seemingly endless war on dog hair in the carpet—is it all worth it?
Let’s look at dog ownership purely as an acquisition.
Understanding Acquisition Costs: Purchasing vs. Adopting a Dog
The first cost associated with obtaining an asset like a Basset is, not surprisingly, acquiring the dog. The options—purchasing or adopting—both involve investment.
Pooch purchase prices vary (often wildly), depending on breed, breeding, age, health profile, and geography. A high-quality, show-dog status canine can go for as high as $85,000. Popular crossbreeds (those gorgeous Goldendoodles and snuggly Puggles) have soared in value, reflecting the supply-and-demand economics of any other desirable commodity.
A backyard-bred pup—which, not to disparage, may turn out to be a wonderful companion—can go for a mere $50. But just as with the difference between a Maserati and a Volkswagen, you get what you pay for.
These extremes in price points are, however, statistical outliers. According to a January 2021 article in PetBudget, the average cost of a puppy across all breeders—from American Kennel Club champions to home-based hobbyists—is $1,300.
Long-Term Financial Commitments of Dog Ownership
Once home, the cash outlay for a dog can seem endless, according to these PetBudget annual averages:
- $1,680 in food, equipment, and toys
- $852 in veterinary care
- $1,150 for behavior training from a certified professional
- $293 in grooming
- $15 for a license
- $40 for a microchip
Totting up all the outlays, bringing a dog into the home and caring for him or her means an initial investment somewhere north or south of $1,300. Beyond that, it can cost an additional $671 per year for the dog’s necessities. And that outlay can be expected for about 10 years, the average lifespan of a typical dog across all breeds.
Putting all this together using all the median data yields:
- A $1,300 investment in buying a dog + $671 for gear, food, and other necessities = $1,971
- $1,971 in expenses × a 10-year lifespan = $21,010
Of course, your mileage may vary. Since half of all dogs live beyond that statistically arbitrary decade, costs can continue to spiral, especially given the elevated need for vet care as a dog ages.
The ROI of Dog Ownership
What’s the payoff for all this outlay of capital?
A Dog’s Impact on Your Mental Health
From a mental health standpoint, the Meadows Mental Health Policy Institute has reported that U.S. employers spend approximately $188 billion in fighting depression in the workforce each year.
WebMD reports that walking boosts the walker’s mood by increasing blood flow to the brain. This outcome positively influences the central nervous response system, where stress responses are generated. Walking calms that reaction, enabling the body to shed feelings of general uneasiness, worry, and anxiety.
A Dog’s Impact on Your Physical Health
Well, other than the eternal gratitude of any kids the dog may share his or her home with, there are documented health benefits to owning a dog.
According to a March 2020 article published by Cleveland HeartLab, routine dog walking is healthy for humans and their canine companions. For the owner, daily laps with a leash, the study asserted, lessen incidents of obesity, heart attacks, and stroke by (among other advantages) lowering blood pressure and cholesterol.
Couching this discussion purely in financial terms, some statistics become very telling.
The National Institute of Health cites the 2001–2016 cost of obesity in the U.S. at $2,505 per patient. That’s 100 percent higher than Americans at normal weight. Dog walking not only burns calories for the human, but it also keeps the dogs trim, which can save on vet bills and canine drug costs.
And if walking a dog can prevent a heart attack in a human owner, the value proposition is even more compelling. According to an article from the National Business Group on Health, the average total cost of a severe heart attack in the U.S.—including direct and indirect costs—is about $1 million.
Can You Afford a Dog? A Cost-Benefit Breakdown of Dog Ownership
On purely a cost-benefit analysis, therefore, the decision to add a dog to a home is an easy one. It’s a $21,010, ten-year investment that yields potential savings that—in worst-case scenarios —can climb to a million bucks.
But stepping away from the banker perspective, a dog brings joy, pride, companionship, enrichment, socialization, unconditional love, and a host of other upsides that can’t be accounted
for on a ledger.
Just the playful lick on the hand of a happy puppy, or sight of an old dog peacefully snoring on a soft bed, can make dog ownership priceless.
