Healthcare costs can get expensive. Pet insurance helps with managing some of these costs. Establishing and maintaining an emergency fund is a great way to reduce anxiety when you run into vet bill sticker shock.
However, creating a pet healthcare savings account for Sugar’s expenses really helped me better manage her medical bills. So, in this blog post, I’m sharing everything I know about creating a pet health savings account.
WHAT IS A PET HEALTH SAVINGS ACCOUNT (PHSA)?
A Pet Health Savings Account (PHSA) is a designated savings account created specifically for covering your pet’s medical expenses. A PHSA allows you to set aside money exclusively for pet-related healthcare costs. It’s like a regular healthcare savings account for your dog.
Whether it’s routine vet visits, vaccinations, dental cleanings, or emergency surgeries, a PHSA gives you the peace of mind that you have funds for these situations. You can set up a PHSA either through a dedicated pet health savings program or a traditional savings account at your bank.
WHY SHOULD I SET UP A PET HEALTH SAVINGS ACCOUNT
The short answer is peace of mind. Whether it’s routine vet visits, vaccinations, dental cleanings, or emergency surgeries, healthcare costs for dogs can get expensive. In fact, I spent over $400 this past summer to take care of Sugar’s newly developed allergies and a sore paw she got when jumping off the couch (again).
According to USA Today, 55% of dog parents have delayed or cut back on veterinary services due the costs of being a dog parent. A Pet Health Savings Account allows you to be proactive with your dog’s healthcare budget instead of reactive. Pet Health Savings Accounts provide:
Financial Security – Having a designated account prevents you from dipping into your regular savings or credit when your dog needs medical attention.
Stress-Free Emergency Fund – Life happens. Having an emergency fund exclusively for your dog’s care can reduce anxiety and stress during those moments. I know it helped me when I had to pay for Sugar’s summer vet bill.
Budget-Friendly Health Care – A PHSA makes it easier to budget for your dog’s health by contributing small amounts regularly.
HOW TO SET UP A PET HEALTH SAVINGS ACCOUNT?
The first thing to do is to set up a savings goal for your PHSA. Your goal should align to what you expect to spend on your dog’s medical bills in a year.
For example, if you expect to spend $600 annually on vet bills, aim to deposit $50 per month. This incremental approach ensures that you’re building your pet’s health savings consistently over time.
The goal isn’t to save thousands of dollars overnight. Start small by calculating an estimated yearly vet care cost, then divide it into monthly contributions.
WAYS TO SET UP YOUR PET HEALTH SAVINGS ACCOUNT
Honestly, I didn’t know if a PHSA was a real thing. So, I went straight to Google to investigate. I found two ways to set up a PHSA for Sugar.
Use a Dedicated Pet Health Savings Program – There are a few programs that can help you create a savings account specifically for your pet’s healthcare. Here are some popular options:
Pawp – Pawp offers a pet healthcare membership that includes 24/7 access to telehealth vet services and an emergency fund for up to six pets. For $24/month, you get coverage for emergency vet visits up to $3,000, which can be a great safety net for unexpected emergencies.
Wagmo – Wagmo provides wellness and insurance plans for pets. Their wellness plans cover routine care like vaccinations, checkups, and grooming, while their insurance plans cover more serious health issues. Wagmo can be a good option if you’re looking for both savings and reimbursement for common vet expenses.
Embrace Pet Insurance – Embrace offers wellness rewards as an add-on to their pet insurance plans. These rewards function similarly to a savings account, where you set aside money to cover routine pet expenses like vet visits, flea and tick prevention, and more.
Open a Traditional Savings Account – Opening a separate savings account through your bank or credit union is a great option. The key is to keep this account separate from your personal savings to avoid using it for non-pet-related expenses. Set up automatic transfers or make a monthly deposit that fits within your budget. I chose this option for Sugar’s PHSA because I could earn a little interest on the money I saved for her expenses.
SAVINGS CHALLENGES TO JUMPSTART YOUR PET HEALTH SAVINGS ACCOUNT
Sometimes, getting started with savings can feel overwhelming, but participating in a fun and achievable savings challenge can motivate you. Here are three savings challenges you can try to help build your Pet Health Savings Account:
The $1 a Day Challenge – Save $1 every day for 30 days. At the end of the month, you’ll have $30 to deposit into your Pet Health Savings Account. Over the course of a year, you’ll save $365 without much effort, giving you a nice cushion for your dog’s vet bills.
The $20 Bill Challenge – Deposit a $20 bill into your dog’s dedicated PHSA every two weeks. By the end of a year, you’ll have $520 to handle your dog’s medical expenses.
The 52-Week Challenge – Start by saving $1 in the first week and increase your savings by $1 each week. So, in week two, you save $2, in week three you save $3, and so on until week 52 when you save $52. By the end of the year, you’ll have saved $1,378.
BACK TO THE PUPCAKES
It wouldn’t be a blog post if I didn’t at least mention baking pupcakes for your dog. Especially, as we’re officially in the holiday treat season. Baking pupcakes like the Cinnamon Oatmeal Pupcake recipe highlighted this month is a great way to save money on buying holiday treats for your dog. The money you save from baking can go towards your dog’s PHSA.
LET’S GET STARTED WITH YOUR PET HEALTH SAVINGS ACCOUNT
Creating a Pet Health Savings Account for Sugar really helped me be proactive about her vet bills. Opening a pet insurance policy helps reduce some of those healthcare cost. However, sometimes I have to wait for reimbursement, which still means I have to pay the bill upfront. Having a PHSA helped me be consistent with saving for Sugar’s medical expenses and take care of those upfront vet costs until I receive the reimbursement.
We’d love to hear your pupcake story. How do you save for your dog’s health expenses? Stay connected and share your pupcake stories with us @pupcakesugar.
Check out our pupcake recipe eBook, Sugar’s Dish: My Start from Scratch Story & 10 “Easy As Pupcake” Recipes to Try at Home. This eBook includes the recipe for the Cinnamon Oatmeal Pupcakes and 9 other beginner pupcake recipes for you to try at home with your dog.
You’ll also get a chance to step into Sugar’s world. I love my dog, Sugar, and her daily shenanigans make me laugh. So, I created an illustrated character inspired by her and her love of pupcakes. Sugar’s character is a “pupcakepreneur” that owns and operates her own pupcakery called Pupcake Sugar. It’s a tongue twister, but it’s amazing what you can create when you let your imagination lead the way.
Also, sign up for the Pupcake Sugar mailing list to get Sugar’s favorite birthday pupcake recipe to try at home with your dog. It’s great for dog moms who are new to baking dog treats.
