7 Tips for Saving Money While Teaching English Abroad

The rewards of living, traveling, and teaching English overseas cannot be measured in dollars, cents, euros or yen, but for most of us, financial concerns are a reality and we want and need to save money to pay bills, reach goals and to make the most of our lives. 

How to Save Money while Teaching English Abroad

Budget wisely: Track expenses, cook at home, and use public transport. Share accommodation, and avoid unnecessary luxuries. Prioritize experiences over material things. Research free activities. Create a savings plan and stick to it. Stay mindful of spending habits.

How to Save Money Abroad as an English Teacher

Here are 7 valuable tips to maximize your financial gains while teaching English overseas.

1. Earn your TEFL certification

2. Head to East Asia or the Middle East

3. Explore Multiple Opportunities in Multiple Countries

4. Think Outside the Box and Stretch Yourself

5. Take on Private Students

6. Learn to Live and Shop Like a Local

7. Get a Roommate

1. Earn your TEFL certification

Receiving training and holding a recognized TEFL certification will qualify you for many more jobs teaching English abroad, especially better-paying jobs. The days when schools and language institutes would just hire people off the street just because they spoke English are largely gone. Most schools that offer top salaries require a TEFL certification and many schools, particularly in the most lucrative job markets in Asia and the Middle East automatically slot teachers with a TEFL certification into a higher salary tier.  

Read more: 6 Tips for Saving for TEFL Certification and Teaching English Abroad

2. Head to East Asia or the Middle East

In Europe and Latin America, most first-time English teachers make a solid wage that enables them to cover their expenses and enjoy a comfortable standard of living.  But they don’t typically make enough based on the local cost of living to save substantial sums (more than $200, for example) at the end of each month after expenses. This is known as “breaking even.”

Where is the Best Place to Save Money Teaching English?

If you're looking to make some serious money while teaching English abroad, the best countries to consider are South Korea, China, Japan, Taiwan, Gulf Arab States, and Vietnam. In these destinations, English teachers can expect to earn a substantial income, with the opportunity to save anywhere from $500 to $1,500 USD per month.

Read more: Top 5 Countries to Make the Most Money Teaching English Overseas

However, in many nations in East Asia and the Persian Gulf in the Middle East, even first-time English teachers with a TEFL certification can make enough to save 30%-50% of their income after expenses based on the local cost of living.

How Much Can I Save while Teaching English Abroad?

Savings vary based on location, lifestyle, and salary. On average, teachers can save a significant portion of their income while teaching abroad, especially in countries with lower living costs. Research specific destinations for accurate estimates tailored to your situation.

Here are some ranges for typical savings when exchanged from the local currency into U.S. dollars (some people may save more or less than these figures).

Many teachers, particularly in South Korea, China and the Persian Gulf countries receive free furnished housing or a housing stipend, and/or free or reimbursed airfare. Receiving free housing is a huge factor in enabling savings, and getting your airfare covered can significantly reduce your own start-up costs.

Read more: How Much Money Can I Earn Teaching English Abroad?

3. Explore Multiple Opportunities in Multiple Countries

Considering and exploring multiple job opportunities in multiple countries will ultimately give you more choice when it comes to the teaching job you accept and it will give you a better chance of landing a good-paying position that will enable you to save more of your income.

Read more: 13 Best Countries for Teaching English Abroad in 2023

4. Think Outside the Box and Stretch Yourself

If you’ve only ever considered teaching English in Europe, but you want or need to make and save more money than you can make teaching English there, broaden your horizons and consider going to Asia where you can make and save great money. Nations like China, Vietnam, South Korea, Taiwan and Japan all offer a great international experience. 

And guess what?!  After you teach English in a place like South Korea or China and save $10,000 - $15,000 after a year of teaching, chances you are you’ll be able to afford several months of travel in Europe and you can stay on and teach if you so choose. 

How Much Money Should I Save Before Teaching Abroad?

Save at least 3-6 months' living expenses, including initial accommodation, transportation, and emergency funds. Research your destination's cost of living for a precise estimate. Having a financial buffer ensures a smooth transition and peace of mind while teaching abroad.

Read more: What Are Basic Start-up Costs for Teaching English Abroad?

5. Take on Private Students

Wherever you teach English abroad, chances are that you can make extra money by giving private lessons.  From China and South Korea to Spain, Germany, Turkey and Argentina, many individuals or parents will pay the equivalent of $20, $30 or even up to $50 an hour or more for private lessons. 

Many foreign English teachers can make double per hour giving private lessons compared to their hourly wage at the school where they teach. In Europe, many English teachers are able to earn the equivalent of an extra $300-$600 a month or even more and in a nation like China, where the demand for private lessons are nearly insatiable, many English teachers in China can make the equivalent of an extra $10,000 or more a year.

How Can I Make Extra Cash when Teaching English Abroad?

Explore online tutoring, freelance writing, or translation services. Offer private lessons. Participate in local gigs or events. Monetize hobbies like photography or crafting. Leverage online marketplaces. Stay legal, ensuring any additional work aligns with your visa regulations.

Read more: Can I Make Money as a Private Tutor While Teaching English Abroad?

6. Learn to Live and Shop Like a Local

In many countries around the world, the cost of living can be quite lower compared to what you may be used to in the U.S., Canada, or the U.K. From 30-cent bus rides to groceries, travel and nearly every other basic good or service, the cost of living in a country like China, Vietnam or Thailand is typically a fraction compared to the U.S. This is one major reason why it is possible for foreigners in Asia in particular to make and save great money.

That said, as an expatriate living in a foreign country, it's easy to fall into the trap of hanging out, eating/drinking and shopping at "foreigner-friendly" establishments and that usually means paying over-inflated "foreigner" or "tourist" prices. You will save a ton more money if you learn how to take public transportation (which means no car loan, insurance or gas money), shop at local markets, and also if you avoid pricey restaurants, bars and nightclubs.

7. Get a Roommate

If your employer doesn’t provide free housing, look to get an apartment with a roommate to share costs and lower living expenses. In most countries, finding other English teachers or local citizens looking to share an apartment is typically pretty easy.

Related Articles:

• 25 Great Websites for International Travel on a Budget
• How Much Money Can I Earn Teaching English Online?
• I Have Student Loans - How Can I Teach English Abroad?