Published By CUEvangelist – June 23, 2024

Pet Savings Accounts (PSAs) have not gained traction among credit unions to date.  Yet, the cost of pet healthcare has skyrocketed over the years.  Pet care can be overwhelming especially in emergencies, highlighting the need for financial services and planning.  Aside from the basic necessities of food and healthcare, there are other related costs for pets such as: grooming, training, and boarding.  As such, credit unions have the wherewithal to create special PSA accounts that are linked to personalized credit cards and even short-term alternative payday loan products with low interest rates to provide members with the financial tools to make ends meet for their pets.

According to the American Pet Products Association (APPA), Americans will spend an estimated $150.6 billion on veterinary care and product sales this year alone.  That will be more than a $ 3 billion increase from the previous year  when actual pet expenditures were at $147 billion.  In 2024, although almost $67 billion is projected to be spent on pet food and snacks, approximately $40 billion is in the forecast to be expended on veterinary care and related products.  Additionally, there has been a shift away from the local community veterinarian to animal hospitals that utilize advanced imaging technologies, in-house labs, and twenty-four hour emergency care.  These advancements contribute to the rise in pet care costs.

Credit unions can facilitate the means by which members can save for future pet healthcare costs that can include emergency care.  The benefits of having PSAs are:

• Financial Preparedness

PSAs encourage members to set aside funds regularly for their pets’ medical needs. By contributing a small amount each month, members can build a financial cushion to cover routine check-ups, vaccinations, emergency treatments, and even specialized surgeries. This preparedness reduces the financial stress associated with unexpected veterinary bills.

• Promoting Responsible Pet Ownership

Having a dedicated PSA reinforces the idea of responsible pet ownership. Members are more likely to seek timely veterinary care if they have the funds readily available, ensuring their pets lead healthier lives. This proactive approach to pet healthcare can prevent minor issues from escalating into major health problems.

• Building Loyalty and Trust with Members

Credit unions are known for their member-centric approach and community involvement. By offering PSAs, credit unions can strengthen their relationship with members, demonstrating a commitment to their financial well-being and lifestyle needs. This specialized service can differentiate credit unions from traditional banks, attracting pet owners who value personalized financial solutions.

• Encouraging Savings Habits

PSAs can also serve as a gateway to promote broader savings habits among members. Once members experience the benefits of regular saving for pet healthcare, they may be more inclined to open additional savings accounts for other purposes, such as education, vacations, or emergency funds. This comprehensive approach to financial wellness can enhance members’ overall financial stability.

• Community Engagement and Support

Credit unions can further engage with their communities by partnering with local veterinary clinics, pet stores, and animal shelters. These partnerships can include joint educational seminars on pet healthcare, exclusive discounts for account holders, and community events promoting pet adoption and wellness. Such initiatives not only benefit members but also foster a sense of community and shared responsibility.

The introduction of PSAs by credit unions offers a practical and beneficial solution to the rising costs of pet healthcare. By promoting financial preparedness, responsible pet ownership, and fostering member loyalty, credit unions can play a crucial role in enhancing the financial and overall well-being of their members. As the costs of pet healthcare continue to rise, such innovative financial products and services will become increasingly valuable, solidifying credit unions’ positions as trusted and member-focused financial institutions.

Mark S. Brantley, Esq. is known as the CUEvangelist – “Spreading the Good News About CUs!” and is also the Asst. Director of Operations at Arizona State University. He was the former vice-chairman of the AACUC, former board member of CUNA, and former Chairman of the Municipal Credit Union. He has written numerous articles and white papers on credit union advocacy, legislative, and regulatory matters.