Can you save money while teaching English abroad?

There’s an aspect of TEFL that probably isn’t spoken about enough. Not only is teaching abroad an opportunity to see the world, fulfill your potential, and meet new people, it can also be a great way to save some extra cash while you do it! 

You might not become a millionaire teaching English as a foreign language, but skilled teachers can earn above the national average of the country they’re working in – and have a great standard of living while doing it!

From accommodation and travel benefits that push your earnings even further, to tips on how to budget as a TEFL teacher, we’ve broken down everything you need to save money teaching English abroad.

How to budget as a TEFL teacher

While budgeting may not be the most exciting part of teaching English abroad, it does make the experience more rewarding. 

First, be realistic about what you need to spend money on. What’s included with your contract, how much will you earn, and where can you save? Write everything down. Rent, flights, travel to and from the airport, weekly food and drink expenses, commuting, and anything you can think of - it all adds up.

Secondly, use online banking. Try to find the best deal so you can save on transaction fees. Some banks might even give you a joining bonus, which goes a long way when you’re saving! When you bank online, you can more easily stay on top of your finances, move money into a savings account, keep track of your direct debits, and not rely on physical banks.

Online banking also means you can use online saving tools like Plum and Emma , which can show you where your money is going and where you can save. These kinds of tools are also great for creating savings funds and setting goals. 

Next, try to find good budgeting tools. Resources like Citizens Advice and Money Helper can help you create an attractive budget that allows for an exciting, immersive experience abroad.

Tip: Saving money can be a bit of a drag, but money challenges can make it more exciting. For example, try putting £1 in a savings account. Then, next week, £2. The week after, £4. Continue to double it as much as you can - you may suddenly have a healthy-looking savings account from out of nowhere!

Where can I earn the most teaching English abroad?

If you have the right qualifications and teaching experience, you can earn a good salary teaching English abroad . Top-earning English teachers usually have at least a bachelor’s degree, a TEFL certificate , and an established history as a TEFL teacher. However, new teachers can earn a decent living, too!

China is an example of a country with plenty of well-paid jobs. Similarly, the Four Asian Tigers - Hong Kong , Singapore , South Korea , and Taiwan - pay English teachers well. You’ll usually need a degree, a TEFL certificate and some experience to earn top wages.

The same applies to top European destinations where TEFL teachers can make considerable money. Some of the continent’s best salaries are found in the Netherlands , Finland and Norway , though jobs are ultra-competitive. Elsewhere, look to tourist destinations like Croatia and the Czech Republic , where you can find well-paid tutoring gigs.

If you’re looking for the highest salaries, the Middle East is where it’s at. If you meet the requirements for a TEFL job in the UAE , you can earn a starting salary of at least £1,600 / $2,040 per month, rising to as much as £4,000 / $5,110. Neighbouring countries like Saudi Arabia , Oman and Qatar offer similarly sizable pay packets.

Factoring in the cost of living

The cost of living can make all the difference. Before you immediately say yes to a salary that looks good on paper, consider how far it’ll actually go every month. There are plenty of locations where salaries look fantastic – until you have to actually pay for things!

Take Norway , for example. The average salary for a TEFL teacher is around £3,234 / $4,176 per month, which looks great on paper. However, renting a one-bedroom city centre apartment can cost about £930 / $1,269 per month, basic utilities cost about £178 / $243, and internet access usually costs £44 / $60. According to Numbeo , living costs are about 22% higher in Norway than in the UK!

By contrast, Vietnam can offer TEFL teachers an average salary of about £1,373 / $1,766 monthly . It might seem like far less, but monthly rent typically only costs about £263 / $358 in metropolitan areas, utilities are about £52 / $71 and internet access comes to about £7 / $9 per month. In general, Vietnam is almost 60% cheaper to live in than the UK. 

Again, just because a salary appears low, it doesn’t mean it necessarily is. Cost of living is everything when you’re budgeting and trying to save money for a rainy day.

Finding cost-of-living information

What are the best resources for finding the cost of living in different locations? Read what expats say ; you’ll generally see the most honest accounts. Numbeo has user-generated cost-of-living data, which is frequently updated. You’ll also find helpful information in our country guides to help you get started. 

We’d also suggest consulting our social media , where active TEFL teachers tell their stories. Take Katherine, a teacher and TikTokker working in Japan. Katherine says rent, food, and utilities are her most significant expenses. Summarising her main costs, Katherine summarises:

“In total, my monthly expenses come to ¥117,000 (£590 / $804) . That includes all the basics I need to survive.”

It’s not just Japan - some of the most exciting TEFL locations can be surprisingly cheap to live in. In rankings of the most affordable countries , amazing TEFL destinations like Mexico , Thailand , and Vietnam frequently pop up. You can experience a new culture, earn a wage, and build an exciting career in TEFL, but you can also do it all while living like a local and paying far less for day-to-day expenses.

Benefits

If you’re worried about the cost of living, it’s worth exploring destinations where teachers are commonly offered benefits packages. These benefits can include accommodation, flights, health insurance, visa processing fees, some meals and coverage of commuting costs. It’s more common to receive these kinds of benefits from international and private schools, but some state schools and private language businesses will try to entice foreign TEFL talent with money-saving incentives!

How to pick up extra money as a TEFL teacher

An ideal way of generating income - and saving money! - is through diversifying your workload as a teacher. What does that mean?

Tutoring can be a perfect way to build substantial savings. Corporate clients, in particular, can be great earners. It’s easier to find corporate gigs if you have a certificate in teaching Business English , and you’re in a major economic centre. 

Taking on different part-time jobs might be the most lucrative option. This is especially true in countries like Italy and Germany , where full-time teaching contracts aren’t necessarily the norm. 

While it’s not always the most secure lifestyle, temporary employment across a range of audiences and companies can pay well. It can also mean having a range of positive references and reviews.

A great way to increase your salary while teaching abroad is to use free time to teach English online . You’ll either work for an online teaching company or set your rates on an English teaching platform. 

Some online English teaching companies pay better than others, and it depends on your qualifications and experience. Companies typically hire employees on a flat rate, with a mandated number of hours. Platforms give teachers more control over their hours, but clients aren’t guaranteed. If you can forge a solid reputation on an online teaching platform, it can pay well and allow you to build a savings pot.

Adapting your lifestyle

Teaching English abroad isn’t about squeezing every penny, living off packet noodles and staying indoors. Some positive lifestyle choices will result in a more authentic experience, and there are some straightforward fixes you can make.

Where it’s safe to do so, take public transport. A lot of countries have secure, reliable trains, subways and buses. If you can find accommodation close to your work, go for it. You can save all kinds of money by living without a car. Schulyer, who’s been travelling and teaching around Southeast Asia , recommends overnight travel. Not only is it usually cheaper, but it also means you have more daylight hours to explore new places. She also suggests eating where the locals eat, investigating small family restaurants and street food options. 

Relying on local amenities can mean a range of savings. Depending on where you teach, you’ll often find the best local food is available cheaply from markets. If you’re a “foodie”, research the cost of cafes and restaurants - you might find you can eat cheaply, like The TEFL Org’s Luke did while teaching in China . In Luke’s episode, he told us that he could eat in restaurants most nights in China! If you’d rather cook, try to learn some local recipes, or use local ingredients and adapt them to your favourite meals. Not only is it a good way to save, but it’s also a great way to immerse yourself in a culture.

Internet cafes, public gyms, bike schemes, libraries - whatever you need, see if you can find it cheaply nearby. While you’re at it, find out what you’re still paying for at home. You don’t need a gym membership in Chicago while teaching in Chile. 

Before you move, it’s worth consulting savings lists to see where your blind spots are. Do you have anything you could sell before you move? Are you still paying for things you don’t need? It might sound boring, but giving yourself an audit and writing down what you need and don’t need can genuinely save thousands.

Verdict: Can you save money teaching English abroad? Absolutely! 

It’s possible to save money and earn a great wage while teaching English abroad. 

Don’t get us wrong, you’ll likely need some start-up funds before you leave. If you start learning good saving habits before you leave for new pastures, you’ll be more able to adapt when you move. Draw a budget plan, examine your expenses and monthly subscriptions, and go from there.

If you have the experience and qualifications, and money is your biggest priority, seek out countries where you can earn the most. The Middle East, parts of Asia and northern Europe are amongst the best-paying TEFL locations. Cost of living matters, too, and it’s important to gather information from trusted sources.

When drawing up a list of destinations for your new TEFL adventure, consider what you’ll need, how you’ll pay for it, and whether or not you can save for the future. You might find it’s easier than you thought, and you can still have a life-changing experience while being financially prudent. 

Want to hear from real TEFL teachers about their experiences teaching overseas? We have a podcast for that! Listen to six seasons of I Taught English Abroad for inspiration, advice and amazing stories.