Travel and Save Money: Ultimate Guide to Budgeting as a TEFL Teacher Abroad in 2026
Learn how to maximize your savings as a TEFL teacher abroad.
Key Takeaways 🔑
- How much you can save is dependent on a number of things like the kind of lifestyle you lead, expenses, and your salary.
- The salary you earn will typically depend on location, your credentials, and experience. The more experience and credentials you have, the easier it will become for you to earn higher-paying teaching jobs!
- Some of the countries with the best saving potential include China, UAE, South Korea, and Japan.
- You can increase your monthly savings by sticking to a budget, doing free or cheap activities, or taking on a side gig.
If you’ve been dreaming of moving away or working in another country, teaching English as a foreign language (TEFL) is a popular way to do it! Not only will working as a TEFL teacher allow you to live abroad, see the world, and gain valuable skills, but it could also be an effective way to save some cash. Pay off debt, save for your first house, or finally cross off every country on your travel bucket list – TEFL opens the doors to a whole new lifestyle!
Read on to learn how to save money while teaching English abroad and pick up some tips to help you budget like a pro.
Factors that may affect your savings
How much you can save as a TEFL teacher abroad varies by a number of factors. Some important things to consider include:
- Starting salary: Your pay is usually based on things like experience, qualifications, and the type of employer (i.e. private vs. public school). New teachers will generally start on a lower pay grade. Be sure to research local salaries for your role and don’t be afraid to negotiate!
- Cost of living: Some TEFL jobs offer perks such as free housing. If your employer doesn’t, housing will be the largest expense you face monthly. Research food, transportation, and entertainment costs to be sure you’ll be able to make ends meet.
- Lifestyle: Your lifestyle will affect your budget. Frequent excursions, takeaways, nights out, and weekend travel will add up, and it'll often cost more to live in larger cities than smaller cities or towns.
- Existing debt: Got credit card or student loan debt? If you’ll need to make payments to accounts back home, don’t forget to set aside money to cover them.
- Healthcare: Most teaching contracts include health insurance but if you have additional care that may not be covered, look into how much those out-of-pocket expenses may be. Thankfully, medication overseas is usually much more affordable than in the US.
- Emergency fund: It’s always advisable to arrive in your new country with a safety net of at least a few thousand dollars outside of what you’ll need for startup costs. If that isn’t possible for you, it’s never too late to start setting aside a portion of your paycheck each month for any emergencies or unforeseen costs that could arise.
Top TEFL countries for saving money
As we highlighted above, it’s nearly impossible to give you a solid figure of how much you can save teaching English abroad due to the uniqueness of every situation. That said, it’s helpful to have a general estimate to guide you. Below, we outline some of the most popular countries for teaching English abroad and what you could potentially save.
Note on figures in the table: Estimates are in USD and are based on a modest lifestyle. Housing is deducted from countries that typically provide it.
| Country | Salary | Cost of Living | Housing | Avg. Savings |
|---|---|---|---|---|
| China | $2,000 - $5,000 | $500 - $1,000 | Yes | $1,000 - $2,500 |
| South Korea | $1,100 - $4,400 | $450 - $900 | Yes | $400 - $1,000 |
| Japan | $1,400 - $4,000 | $600 - $1,450 | No | $500 - $1,000 |
| Thailand | $850 - $2,500 | $450 - $600 | Yes | $200 - $500 |
| Vietnam | $1,200 - $2,200 | $500 - $1,000 | No | $400 - $600 |
| Taiwan | $2,000 - $2,400 | $1,150 - $2,500 | No | $900 - $1,200 |
| Spain | $1,000 - $1,400 | $900 - $1,700 | No | $0 - $100 |
| UAE | $3,300 - $5,500 | $800 - $1,800 | Yes | $1,000 - $2,000 |
Source: Numbeo
Tips for maximizing savings
If your goal is to save as much as possible while teaching abroad, you’ll need to plan ahead and make sure you know all the tips and tricks. We recommend a combination of methods to stretch your paycheck each month.
- Set up a budget tracker: Whether you set up a spreadsheet or rely on expense tracking apps, tracking expenses is crucial to understanding and maximizing your savings. Start by establishing the monthly constants like rent, bills, max grocery budget, transit, and additional costs like monthly subscriptions and memberships. Once you've the basics deducted from your salary, you can start to set aside extra allowances for entertainment, travel, and savings.
- Cut costs: Shopping at local markets, cooking at home, walking or using public transport, and pursuing free or low-cost activities are a few ways to save money. Little things add up!
- Get a roommate or two: Unless housing is provided, sharing accommodation with other teachers or local students can be a great way to lower your rent and bills (and make some new friends, too!). Network through your teach abroad program, assigned school, or local Facebook group.
- Find a side hustle: If your visa allows it, picking up a part-time job is a great way to supplement your savings. Teach online, do private tutoring locally, or consider a digital nomad job like a virtual assistant or content creator.
Living with a budget can be tricky but that hard work will literally pay off!
Common budgeting mistakes to avoid
When budgeting on a teacher salary, you can easily find yourself in the red at the end of the month if you don't plan carefully. Avoid these common budgeting mistakes to keep your finances in order.
- Underestimating start-up costs: It’s common for teachers to arrive in their new country with less than they need to get started, scrambling for that first paycheck. You'll need to consider start-up costs such as housing (rent and deposit), transport passes, food and groceries, utensils, gym memberships, and so on. Remember, you likely won't be paid until your second month of teaching!
- Overspending once you arrive: The excitement of being in a new country might send you into tourist mode. Avoid the urge to splurge on souvenirs or other items you might buy while on vacation. Arrive with the mindset of living like a local!
- Not logging all purchases: A coffee here and a quick restaurant lunch there may be one-off expenditures for you regularly, but they do add up. Don’t forget to keep track of all of your purchases, no matter how small or infrequent.
- Missing out on discounts: Depending on your age, you may qualify for discounts on travel or entertainment in some countries. For example, in Madrid, Spain, anyone under 26 can get the Abono Joven transit card that gives them unlimited access to the metro, buses, and Cercanías trains all for the low, low price of $20 USD a month.
Budgeting tips from a teacher in China
Kathleen who taught in Shanghai, China with Teaching Nomad, shares how she was able to save up so much money as an English teacher in China.
separator_solid"In China, there is a lucrative income that can be made from private English tutoring outside of regular school hours. Because most of my daily bills were covered by the school, I was able to live off of the income I made tutoring weekly and send the majority of my [salary] home to America to pay off debts and save on investments," - Kathleen
Grow your savings teaching english abroad!
In the end, your ability to save hinges both on factors you can’t control (salary, location, cost of living) and lifestyle mods you can adopt by living frugally. It all depends on the kind of experience you want in your time as a TEFL teacher overseas. Spend a gap year living the high life or build your savings and career in the long term – the choice is yours!
Learn more about life abroad as a TEFL teacher:
