Pets show affection and can give life more meaning—but they undoubtedly become a major line item in a budget, considering the cost of insurance, vet care, food, shelter, and of course, the trendiest bandanas and leashes. Still, having a pet is considerably more affordable than having a child. Parents can expect to pay between $16,000 to $18,000 per year, according to USDA estimates. Pets, on the other hand, cost their owners a little more than $1,300 per year, according to Empower, a financial services company offering planning, investing, and advice. 

While having a pet is more affordable than having a child, these lovable furry friends actually serve as a great catalyst for financial health. Indeed, nearly 40% of people say having a pet inspires them to be more financially responsible, and another 36% says they motivate them to reach their financial goals, according to Empower’s survey of 1,000 pet owners in the U.S. 

This is particularly true for Julio Bedolla, a wealth manager with LourdMurray. He and his wife have six dogs, which “significantly impact our spending,” he tells Fortune. 

“Regular expenses for food, health care, grooming, and other consistent costs teach owners the importance of budgeting, planning for future expenses, and building emergency funds for unexpected vet trips or paying for vet insurance,” Bedolla says. “Because we plan accordingly, we are able to make it work.”

Pets can be a primer for having kids

While they’re not ready to have kids, Bedolla says caring for pets gives them “an eye-opening sense of responsibility,” and prepares them for making ongoing financial investments. However, he acknowledges that the cost of having a child is still much greater than caring for a pet, especially when you factor in childcare and education.

But pet parents still have to take into consideration their pets when making other major financial decisions, like buying or renting a home. Not all homes are suitable for pets—or even allow them there. This similarly plays into other major costs such as planning and saving for travel. 

“You need to factor in pet costs, whether it’s boarding them or taking them with you,” Bedolla says.

Good money habits—and ‘not-so-good’ money habits

Owning three cats—and planning to add a puppy to her household in the next month—has inspired millennial public relations specialist Kristi Hedrick to adopt some good money habits as well as some “not-so-good” money habits, she tells Fortune. 

The good money habits include always having money stored away in case an emergency were to happen with one of her pets. Plus, her cats are on a special diet, so she has to incorporate the cost of their food into her monthly budget. 

However, “the not-so-good money habits tend to come from wanting to spoil my pets and get them new toys or treats,” Hedrick says. “My animals have plenty of toys, so that’s not always the best way to spend some extra cash that I may have.”

Still, Hedrick and other professionals say it’s “incredibly important” for pet owners to really understand how much it costs to raise a pet. Ali Smith, CEO and founder of dog training company Rebarkable, encourages aspiring pet parents to do their research about the average costs for their breed, as well as any health issues and temperament issues that come with owning that type of animal. 

“If you choose to rescue, be aware that with unknown health and temperament issues, you could be facing large health bills and training bills in order to achieve a happy, harmonious home,” Smith says. “Budget for those.” 

Pet parents spend the most on golden retrievers, beagles, german shepherds, labrador retrievers, and dachshunds, according to Empower.

Other costs of pet ownership stem from lifestyle choices and employment. The Empower survey shows, however, that pet parents are willing to make major life changes with their pets in mind. Nearly 60% of respondents said they switched jobs for more pet-friendly benefits while the pay was the same. And more than a quarter said they would take a pay cut with flexible hours in order to spend more time with their pet.

“Think critically about your lifestyle,” Smith says. “Do you need support from a doggy daycare? Or a dog walker? All of that costs money. Making that commitment is potentially 14 years of financial commitment. Sure, there’s no college or cars to buy, but [pets] can be a costly luxury in our lives.”