The money conversation most roommates never have, until it's too late

RBC launches its Roommate Money Guide to help students navigate shared financial expectations and budgets with confidence

TORONTO, Aug. 24, 2026 /CNW/ -- As students head back to school and many move in with roommates, Royal Bank of Canada (RBC) is helping them navigate one of the biggest – and most overlooked – challenges of shared living: money. With rising housing costs, shared living arrangements are becoming increasingly common. According to Statistics Canada's latest census, roommate households were the fastest-growing household type between 2001 and 2021, increasing by 54%. Among Canadians aged 20 to 34, living with people outside a census family was also the fastest-growing living arrangement from 2016 to 2021, increasing by 20%.

While sharing a home can make living more affordable, it also means sharing financial responsibilities--and that's where conversations can become uncomfortable or complicated. To help students navigate these discussions with confidence, RBC has launched its Roommate Money Guide, a practical resource designed to help roommates set financial expectations before move-in day.

Financial challenges created by the conversations roommates don't have
Money can be one of the biggest sources of tension in a shared household, particularly when expectations aren't discussed upfront. From deciding how to split everyday expenses and household purchases to managing rent, bills and unexpected costs, unclear financial expectations can quickly lead to misunderstandings, financial stress and strained relationships.

"Living with roommates isn't just about sharing a space -- it's often about sharing financial responsibilities," said Lucianna Adragna, Vice President, Client Segments, Everyday Banking, RBC. "Too often, roommates delay or avoid the money conversation because it can feel uncomfortable. But when expectations aren't discussed upfront, misunderstandings can quickly turn into financial stress and strain relationships. The best time to talk about finances is before move-in day. Our Roommate Money Guide gives students practical ways to start those conversations, set expectations and build a stronger foundation for living together."

Know your budget before you split the bills
Before deciding how to divide household costs, each roommate should understand their own finances. Know how much money is coming in from work, scholarships, student loans or family support, and account for personal expenses you'll cover yourself, such as tuition, books, cell phone bills, transportation, move-in costs and other recurring expenses. If possible, set aside some money for emergencies. That math will help paint a picture of what's realistic to contribute each month to the shared roommate expenses.

To help students feel more confident about shared living, RBC created the Roommate Money Guide – a practical resource to help roommates have money conversations that are easy to avoid or defer but can make all the difference once move-in day arrives.

Four conversations worth having

1. What's our financial compatibility? Roommates can default to an informal "we'll figure it out" approach, which works until it doesn't. Before moving in, talk about each person's spending habits, shared priorities and expenses. For example, one roommate may be happy splitting the cost of streaming subscriptions or ordering takeout regularly, while the other prefers to keep shared costs to a minimum. The goal isn't to find roommates who spend money the same way – it's to find roommates who can communicate about money effectively.
    
2. Establish house rules. Set clear expectations for how household finances will work. Decide which bills are shared, how you'll split costs and how you'll handle new or unexpected expenses that come up throughout the year. A little clarity up front can prevent a lot of frustration later. 
   
   
3. To split or not to split. Some costs are shared. Others aren't. Whether it's groceries, streaming subscriptions or furniture, talk through what's fair for the household. The best system isn't necessarily equal; it's one everyone understands and agrees with. 
   
   
4. How to plan for the "what if's". Life doesn't always go according to plan. What happens when roommates don't have rent ready on the first of the month, when a roommate has to move out unexpectedly or when the coffee machine breaks? Agree ahead of time on how you'll handle deposits, late payments and other surprises so everyone knows the plan before problems arise.

Financial situations and living arrangements can change throughout the year. Set aside time every month or every few months to check in as a household, revisit budgets, discuss any changes to income or expenses, and make sure everyone still feels the division of responsibilities is fair. Regular, open conversations help prevent misunderstandings from turning into larger financial or relationship challenges.

RBC tools to help you plan, budget and navigate roommate money conversations
Navigating financial conversations with roommates can be uncomfortable, but RBC has several practical tools to help:

• Roommate Money Guide: A detailed overview of the ways roommates can openly communicate about money and set up systems to track spending in a way that works for them.
• Financial Compatibility Quiz: A quiz created by BuzzFeed in collaboration with RBC to help roommates start discussions around their financial compatibility.
• A Student Budget Calculator: A tool to help you estimate school-related expenses.
• NOMI Budgets: An in-app tool that generates personalized budget recommendations based on actual spending patterns.
• Split with Friends: An in-app tool that allows you to keep track of who has paid for various expenses, whether it's recurring bills or shared purchases, and request and keep track of re-payments.

"There's no perfect formula for sharing expenses because every household is different," added Adragna. "The key is creating a system that everyone understands and feels is fair, and checking in regularly as circumstances change. Whether it's revisiting a budget, talking through an unexpected expense or adjusting how costs are shared, ongoing conversations help roommates stay on the same page throughout the year. The best roommate relationships are built on more than a shared lease; they're built on shared expectations."

As young Canadians increasingly move in with roommates and share rent, RBC is committed to helping students and young adults set clear expectations using practical tools and resources, like the Roommate Money Guide, to confidently have better money conversations before they get the keys.

Disclaimer
This is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. 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.

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Media contact:
Matt Trocchi, Corporate Communications, RBC

SOURCE RBC Royal Bank