I've had 10+ roommates over the years. Here's what I wish we'd known about managing money

I know, I was shocked too when I added it up. But after travelling through my 20s, living in three countries and eventually ending up in Montreal in my 30s, I can say, hand on heart, that I've had more than 10 roommates and three of them were named Lauren. Weird.

And now, with shared housing becoming an increasingly common option for Canadians ages 20-34 (Statistics Canada), it feels like the right time to share some lessons I learned about managing money with roommates.

Let me also say that I wish I'd had resources like the RBC Roommate Money Guide to help me, especially features like Split with Friends, NOMI budgets in the RBC app and the Student Budget Calculator, so I didn't have to learn all this the hard way!

In the spirit of being direct about money, let's get to it.

A roommate is a financial relationship

Can you and your bestie talk turkey about money?Antonio Guillem | Dreamstime

It may not feel like it when you move in with your bestie, but a new dynamic has just entered the chat: you just made a financial commitment to each other. This is true whether you're close to your new roommates or not, so the important thing is to take responsibility for your part of the arrangement.

You may have moved in together because of the cost of living, but if you avoid difficult conversations about money, the real cost of living could be unpaid rent, overdue fees, damaged credit scores, loss of housing and possibly your friendship.

Get familiar with each other's money style

We prioritize finding the right personalities when it comes to picking a housemate, but we rarely look at financial compatibility. Beyond whether or not they have a job, financial compatibility is about being able to speak frankly about money.

"We'll figure out" sounds like an easy-going approach, but when the rubber hits the road, it won't help you plan ahead for a broken TV or figure out who is responsible for which utilities.

For my part, having a budget was critical to making sure I could hold up my end of the bargain. Having a tool like NOMI Budgets could have made it easier to understand where my money was going and stay on track.

Set expectations and responsibilities early

Managing your home is a team effort with roommates. cottonbro studio | Pexels

Whether you're moving into an already established place or you're all moving in fresh together, it's important to set the expectations from the start.

Do you split each bill? How will you handle unexpected expenses that come up? Will you have a petty cash fund for household bits and pieces? Lay it all out before move-in day, because life is so much easier when you're not making assumptions about it.

In one place I lived, we set up a shared bank account from which all the rent and bills were paid. We each deposited an agreed-upon amount each month, and that's how we managed splitting shared expenses. I'm not saying it's the right way, but it had its benefits.

When splitting makes sense and when it doesn't

There's more than one way to split bills. Mizuno K | Pexels

Some things make sense to split off the bat, like rent, tenant insurance, electricity, internet, but then you have to start making some decisions. If you share a lot of meals, you may want to split groceries, for example.

One of my favourite arrangements was when each housemate paid for their preferred streaming service and we kept them all logged in on the living room TV.

For more irregular purchases like pizza or concert tickets, tools like Split with Friends are super helpful. Simply put in the people you're splitting with, set the amount (custom or evenly) and send out the request.

Plan for emergencies

Are there any "emergencies" that you can be ready for in advance? cottonbro studio | Pexels

Some things are real emergencies, and others you can actually see coming. Were we really surprised when the kettle we got from one of our parents’ basements died? No. Could we be pretty sure the rent would go up next year? Yes.

Whether it's a new appliance purchase, a price increase or a roommate moving out, there are big, fairly predictable scenarios you can prepare for in advance. The point is to have the chat early on, ideally before you all move in, so that you can navigate those moments with clarity and confidence.

This article is full of great questions to ask your roommates before you move in, and is just one of many resources in the RBC Roommate Money Guide to help you navigate this new financial situation.

While I now live alone, some of my favourite memories come from the times I had with my roommates. It's a special and unique experience that can end up feeling like a magical mix of friendship and family. And just like any important relationship in your life, it can only get better with clear communication.

To learn more about the RBC Roommate Money Guide, visit their website or follow them on Instagram and Facebook.

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A professional advisor should be consulted regarding your specific situation. The information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.