Keep pet expenses on a short leash

Pet owners spent $43.2 billion on their animals in 2008, according to the American Pet Products Association. This year, despite the recession, they are expected to spend 5 percent more. But your furry (or scaly, slimy or feathery) loved one's health and happiness doesn't have to cost a fortune.

Veterinary bills are among the biggest budget busters, and they're rising much faster than the average overall cost of owning a pet. In 2009, spending on vet visits is expected to increase 10 percent, to $12.2 billion.

But don't be tempted to pinch pennies by cutting back on preventive care, advises Louise Murray of Bergh Memorial Animal Hospital in New York. "Contracting an illness could be far more costly," she said. For example, immunizing your dog against the parvovirus costs $15. Skip the shot, and you could wind up paying up to $5,000 for treatment in a veterinary hospital's intensive-care unit.

-- Buy a wellness plan. To save money on routine vet visits, vaccinations and preventive medications, consider a wellness package, which many veterinary practices provide at a discount. Talk to vets in your area to see what kinds of deals they offer, or look into a plan that's offered nationwide. For example, with the Pet Assure program, an annual fee of $59 a year for a cat or $99 for a dog entitles you to 25 percent off visits to veterinarians in the company's network, plus 5 to 50 percent off pet supplies and services from participating retailers.

-- Routine grooming can stave off infections and other costly problems. Stephen Zawistowski's beagle, Morgan, has seasonal allergies and is prone to ear infections. After consulting with his vet, Zawistowski began a regular regimen of washing Morgan's ears to keep infections at bay. He also routinely shampoos Morgan's feet to get rid of itchy pollen that makes the dog chew at his paws, which could cause significant skin problems.

-- Maintain a sound diet. Treating pet diabetes can cost $50 a month for standard supplies, including insulin and syringes. More serious diabetic cases could lead to a trip to the ICU, which can cost up to $3,000. In fact, maintaining a proper diet for your pet may not only prevent diabetes but it might also cure the illness in cats when combined with insulin treatments.

In addition to diabetes, cats are especially susceptible to diet-related ailments. They are "pure carnivores who don't drink much water," Murray said. So dry food, which is typically carbohydrate-heavy, can lead to urinary-tract problems and kidney failure.

-- Consider pet insurance. Even if you provide all the proper preventive care, you still can't protect your pet from everything. "Almost every animal at some point in its life is going to have at least one serious medical issue," Murray said. "The most important thing is for pet owners to have a backup plan."

If you don't want to pay out of pocket, you have two choices: Set up a special savings account, or buy pet insurance. Murray recommends maintaining a fund of $1,000 to $2,000 for a typical animal emergency, such as a stomach problem.

Pet insurance might start to look more attractive as sophisticated treatments become more expensive. Over the past few decades, the veterinary field has advanced rapidly, with high-priced procedures such as $600 biopsies, $3,000 orthopedic surgeries and $7,000 kidney transplants.

On average, a basic pet-insurance plan costs $19 a month for a dog and $15 a month for a cat, according to the American Society for the Prevention of Cruelty to Animals. At http://www.petinsurancereview.com, you can compare policies.

-- Note what's not covered. Many policies do not cover congenital problems to which your pet's breed may be susceptible. So cardiac arrhythmia might be excluded, for instance, for a purebred boxer or narcolepsy for beagles or exercise-induced collapse for Labrador retrievers because those conditions are common to those specific breeds.

But that doesn't make all pet policies a bad deal for purebred dogs. (Purebred cats are rare in this country and don't often have problems with insurance exclusions. Mutts don't face coverage exclusions, either.)

-- Kiplinger's Personal Finance