4 financial conversations I had (or should have had) with my roommates before move-in day

Life is expensive, and as costs go up, more and more Canadians are choosing to live with roommates. Moving in with new people is a big life change, and amidst the excitement and nerves, it’s easy for conversations about finances to be pushed to the back burner.

Whether it’s deciding how to split bills, rent, rising utility bills, or paying someone back, putting off money conversations can make the problem bigger than it needs to be.

Having lived with roommates myself, I know firsthand the benefits of having these financial understandings and the consequences of leaving things unsaid.

Here are four conversations you should be having with your roommates ahead of move-in day.

What’s our financial compatibility?

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When I first lived off-campus with roommates, I was moving in with three girls I had already lived with in residence. This being the case, we already knew each other’s financial situations: two full-time students with part-time jobs, one full-time salaried employee, and one full-time waitress.

But if you’re responding to an online ad or finding roommates through word-of-mouth, it’s not always so cut-and-dry. Roommates often default to an informal “we’ll figure it out” approach, which works until it doesn’t.

Before moving in, know your own budget (using tools like NOMI Budgets in the RBC Mobile app), talk about each person’s spending habits, shared priorities, and expenses. The goal isn’t to find roommates who spend money the same way, but rather to find roommates who can communicate about money effectively.

Establish house rules

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When you move in, you should know how household finances will be divided up. Is someone paying more for a bigger bedroom? Is that roommate’s boyfriend who’s always over going to chip in for utilities? And who’s in charge of making sure your landlord receives the rent every month?

My roommates and I decided that we’d split the rent four ways evenly, and draw straws to determine who ended up with the smaller room. Having not ended up with the small room, I can’t confirm if there was resentment over this, but the short-straw roommate never expressed any hard feelings.

I sent in rent, one roommate paid for the utilities, and another paid for the internet. Then, we’d all e-transfer each other the differences. Tools like the “Request Money” feature available in the RBC Mobile app would have been handy for settling up.

To split, or not to split?

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Another habit left over from our time living on campus was buying our own individual groceries all the time, except super niche things that rarely get used. This meant we all paid for what we consumed. It also meant there were four cartons of milk in the fridge at any given time, which could be pretty wasteful. Maybe you and your roommates will want to figure out something more practical and use tools like the Split with Friends feature in the RBC Mobile app to keep track of shared purchases.

For other household expenses like furniture or small appliances, you’ll want to decide in advance how those will be divvied up. Our house was a mish-mash of whatever the four of us happened to own until we had a mostly furnished place, with the understanding that whoever brought the item would get to keep the item when we moved out.

For the things we had to buy new, we had a discussion and decided to split the cost and write it down. And then when it came time to move out, whoever wanted the item could pay the other three out, or we could sell it and split the money.

You’ll want to be super clear about this with your roommates. What may seem like common sense could turn into a full-blown drama. I’ve heard horror stories of shared-custody couches you would not believe!

Plan for the “what ifs”

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Life doesn’t go according to plan. If you had told 20-year-old me that six months after moving in, three out of four of us would lose our jobs, school would move online, and the world would essentially shut down, I would’ve never believed you (can you guess what year it was?)

Hopefully there’s not another global pandemic any time soon, but the sentiment behind planning for “what ifs” still stands. What if one of you gets laid off and can’t make rent? What if a surprise expense pops up? What if someone decides to move out early because life happened?

Living with roommates can be a great way to save money, and it can also be a lot of fun. By discussing finances ahead of move-in day, you can create clear expectations and generate trust so that there isn’t any tension down the road.

Learn more by visiting the RBC website and checking the full RBC Roommate Money Guide for practical tips and tools to navigate shared finances with confidence.