Money: Teaching English

Everybody asks:

How much can I make Teaching English Abroad?

 


But . . . what you need to ask is, “How much money can I save teaching English overseas?”

These are two very different questions.

In some countries you may be provided a relatively modest wage. But with no income taxes, free accommodation, paid or reimbursed airfare, even sometimes subsidized utilities and very low cost of living . . . other than purchasing food – almost everything you are paid is “pocket money” or discretionary income.

The other side of the coin is teaching in some European countries with what might seem to be a very decent wage, but where you must pay for your accommodation, taxes take a huge bite out of your income, airfare is not paid, utilities and transportation are very expensive and the cost of living is very high – and you save nothing. Might even be out of pocket.

So we are going talk about savings, not earnings, here – because what people really want to know is:
Can I pay down my student loans?
Can I pay off my debts?
Can I save enough money to buy an apartment or house – or a car when I return home?

The answer is, “Yes, you can.” It depends only on where you go and your qualifications.

Let’s talk in generalities about regions of the world and specifics about some of the largest EFL markets (China, Korea, Japan, Thailand and more).

EFL Teachers in Korea and Taiwan, for example, typically can save as much as US$1,000 per month or more. Your lifestyle, of course, will affect your personal bottom line as well as how currencies go up and down – but the general idea is accurate. In both countries you will need a BA/BS degree.

TEFL professionals in the Middle East and particularly the Gulf States can sometimes triple the savings of Korea, but the ME will generally require advanced degrees and previous experience for the better positions and some cultural aspects of the region are not to everyone’s liking.

EFL Teachers in China report a good lifestyle on their wages – but that they are usually unable to save significant money, though US$100-200 a month are possible if one is careful.

Thailand and Mexico and many countries in Central and South America offer wages that afford a modest and comfortable living – but serious savings are difficult to come by.

So, as you ponder the decision about teaching English overseas, you’ll also need to consider your financial situation and that will affect what countries you want to look at for your TEFL career.

If you have student loans or other debts, consider only countries where your likelihood of success is great and the average teacher is able to comfortably save at least the amount of your obligations and enough to travel and enjoy the region (Primarily Korea, Japan, Taiwan and parts of the Middle East).

Success

My personal experience is that I started in TEFL with very little in the way of assets – and over the period from 1992 to 2005 was able to buy several rental properties in the USA and pay them off (see TED’s Tips™ below). All the while teaching in four different countries and traveling to many others.

Overall, for me anyway, it was an excellent lifestyle combined with an ability to save. But, it is not all roses and happy faces. I would always prefer to work in a country like Thailand and sit on a beach – but I have had to make some choices and spend some serious time in countries like Saudi Arabia where earnings and net savings can be very high.

TEFL was a real career for me and I needed to make sure I had sufficient funds for retirement (I am now retired at the young age of only 58 – and enjoying that beach!).

TED’s Tips™ #1: In TEFL you are essentially working for yourself, responsible for yourself. Plan for your future carefully.

Working overseas, you might never be paying into a pension fund and if American, you won’t be paying into Social Security. You must plan income for your later years if you intend to stay abroad for a long period of time – or forever. Ignore this tip at your own peril. I’ve have actually seen a destitute old foreigner (Caucasian Westerner) digging through garbage cans, just 100 meters from a beautiful tropical beach. Very sad.

TED’s Tips™ #2: Do you research. Check and double check SAVINGS – not Earnings.

Ask on forums, ask me, ask others: be sure you know before you go.

 

Tags: , , , , ,

categories Uncategorized | | datetime August 14, 2009 1:01 PM

35 Comments

  • By Sergio, August 15, 2009 @ 11:48 PM

    Thanks for writing a blog for the TEFL Newbie! I just received my BA and I’m excited to start TEFL training in Mexico later this month. This blog, along with TEFL Daddy, has been helpful as I start this new part of my life. Keep it up!

  • By Ted, August 16, 2009 @ 7:18 AM

    Go get ‘em – a wonderful new world is just beginning to open to you.
    A year from now you will be blown away by what you have experienced and how much your life and vision of the world have changed.

  • By Loretta, March 27, 2011 @ 4:14 PM

    Hi Ted,
    I am in my mid-40′s, have a PhD in English, but no TESOL yet. I’m wondering if, after getting a CELTA, it would be possible to find teaching jobs in Europe that would allow for “saving.” Also, does having a PhD open any doors?

    Thanks for your comments.

  • By Ted, March 27, 2011 @ 4:15 PM

    Hello Loretta,
    Yes, your PhD should open doors for you if you seek employment specifically at tertiary schools and or perhaps international schools. Europe can be a problem for Americans as EU employers will have to prove that they can not find a qualified candidate from within the EU. With unemployment high in the UK and Ireland, that may be difficult to prove. My understanding is that it is an easier job market in Eastern Europe but then wages are modest and real savings would be unlikely. The Middle East and Korea would both be good options as you soon as you have a good TEFL cert and you can save real money in both places.
    Enjoy!
    Ted

  • By Nick North, December 22, 2011 @ 11:48 PM

    Hi there, I am about to fly out to my first TEFL job in China, where i have it on good authority that over half my wages paid there can be sent home into an account for savings. Admittedly the amount I will be paid is between £500 and £700 a month in English, but the re are jobs in China where they pay more than this. I am a big fan of this site and the Cafe and I appreciate reading about real life experiences in order for me to get ready!!

    Many thanks and good luc to everyone who posts on hre in the future, whether it is your first or your last teaching post.

  • By Ted, December 22, 2011 @ 11:59 PM

    Hello Nick,
    To the best of my understanding you may send up to about 30% of your income earned in China back to your home country. Yes, there are other jobs that pay more but they are usually for teachers who are better experienced, better educated or both. The big cities pay more too, but the cost of living is often very high – higher than in some Western cities. Usually teachers in China can save more if they work in secondary – but still big – cities. Hangzhou would be a good example.
    Good Luck!
    Ted

  • By Rickey, March 8, 2012 @ 5:06 AM

    Hey Ted. I was wondering, how does college work for me if I want to attend college as I work overseas.

  • By Ted, March 8, 2012 @ 5:10 AM

    Hi Rickey,
    Take a reputable distance program for your degree. Both the UK and Australia have some very good programs. USA probably does too.

  • By Andrea, March 26, 2012 @ 4:08 AM

    Hello Ted, thanks so much for your site. I have been looking for a reputable website to look for information and finally found it…thanks for your work. My question to you is this: my husband has a degree and has been a teaching assistant and substitute teacher in the past and I have a degree and am a histotechnologist. We have a 7 year old son and looking to teach abroad so that we may save real money to purchase a home in the US. Given our background and need to have accomodations for three, where is the best place for us to travel to for optimal savings and what companies are easier to work with for families rather than singles? Also as US citizens isn’t are we required to still report and pay taxes on the income we earn abroad…how do we minimize this as to maximize savings?
    Thanks again!

  • By Ted, March 26, 2012 @ 8:50 AM

    Hello Andrea,

    Probably the best place to go is Korea, where you could probably save about US$1000 each per month. You will probably need to home school your child and find someone to look after him at times when you both are working. Yes, you will still need to file taxes – but read IRS 2555 – there is an exclusion of about US$90,000+ per year for EACH of you – you won’t likely be making that much so you probably won’t owe USA taxes. However, you MUST file your taxes and file the 2555 to claim the exemption – otherwise – yes – you will owe taxes on it. Consult a good CPA. It’s not complicated and they will know what to do. You might check out a few “international” schools in Korea as they might be able to provide you with a bilingual education for your son – free.
    Good luck!
    Ted

  • By Andrea, March 27, 2012 @ 10:27 AM

    Thanks for your response Ted. I believe the suggestion to find a n international bilingual school is very helpful since our aim is to both be employed. I’m also pretty sure that daycare assistance won’t be as overpriced as it is here in good old NY! Thanks again and keep up the excellent work with this site.

  • By Matthew Hesse, April 5, 2012 @ 5:07 AM

    Hi! I already have a Bachelor’s Degree in Special and Elementary Education, and am also certified to teach middle school math. Do I need more schooling before I can teach English (or math) in the Philippines?

  • By Ted, April 5, 2012 @ 6:00 AM

    Hi Matthew,
    You should do fine. Your best bet would be to approach international schools. Math teachers in particular are in short supply. Good luck!
    Ted

  • By Rickey, April 20, 2012 @ 5:17 AM

    Hey Ted, I don’t have a degree at all but I thought about getting certified in TEFL, I would like to teach in China. How much money do you think I might be making, and do you think I can pay for college?

  • By Ted, April 20, 2012 @ 6:45 AM

    Hello Rickey,
    Wages in China are modest, but low taxes, free accommodation, subsidized utilities and other benefits tend to mean that your wages are for “food and fun” – so the real question is not How much can you EARN – as much as – How much can you SAVE. This is largely a personal question that depends on your personal lifestyle. If you are out in the nightclubs every night – you’ll spend more than you earn. If you watch your money a bit – still have a good time – you can probably save US$2-300 a month and up from there. There are often opportunities to increase your wages as well.
    I hope that helps.
    Ted

  • By Ren, June 12, 2012 @ 12:44 AM

    Hey Ted,

    I have a Master’s Degree and would like to work in either the Middle East or Northern Africa teaching English to Business Professionals. I am guessing you would say ME would be the better option. In your opinion, which egion would afford me the better opportunities to work with my desired student group, save some money and what specific drawbacks are there working in the ME?

  • By Ted, June 12, 2012 @ 11:09 AM

    Hi Ren,
    I am not sure exactly who your “desired student group” is – but generally speaking, you can save more money working in the Gulf States than just about anywhere else. There are a few exceptions, but few and far between them. Drawbacks? The culture can seem a bit stifling for some people, but others do just fine with it.
    Ted

  • By robert collins, August 9, 2012 @ 10:40 AM

    I have a CLAD certificate along with my regulat teaching cred. I have been teaching gor 15 years at the elementary level. Would I have a hard time getting work in a South Americcan country?

  • By Ted, August 9, 2012 @ 12:13 PM

    Hello Robert,
    I think you would do fine, especially with international schools and that should be where you would look first. Check out ISS.edu for their job fairs around the USA. It costs a few hundred dollars, but it’s a lot cheaper than flying around looking for the jobs.
    Good luck!
    Ted

  • By Shiraz, August 11, 2012 @ 2:20 AM

    Hi Ted,

    I have found your website so useful. Thank you for creating it. My question is that I am a qualified secondary school teacher in Canada. Right now I am still supply teaching after 2 years and am thinking about getting the TEFL qualification from the University of Toronto. Is this necessary to have seeing that I already have a degree in teaching? I am getting tired of supply teaching as permanent teaching jobs are hard to come by here. I just want to know if it’s worth the time, effort and money to take the actual course if I am already qualified. Will it get me more money and will the TEFL degree be more recognized along with my BA and BED?

  • By Ted, August 11, 2012 @ 12:04 PM

    Hi Shiraz,
    It is 100% worth the time and effort to take a TEFL training program. Teaching a foreign language is pretty much different from teaching anything else. There is a specific methodology involved. Certainly your education will help you grasp it and move through it much more easily, but the ideas are still important. You might want to look at teaching university in China. With your qualifications and a TEFL cert – you are good to go.
    I hope that helps.
    Ted

  • By Stephanie, September 5, 2012 @ 10:00 PM

    Hi Ted,
    Thanks for the guidance.When you say that you will need a BA to work in the middle east, do I specifically need a BA in TEFL? I have a BA in Sociology, and was going to earn the TEFL cert abroad. Should I look for BA TEFL programs. Also are there benefits to a TESOL Cert?

  • By Ted, September 6, 2012 @ 3:27 AM

    Hi Stephanie,
    A BA/BS/BEd with any major, coupled with a good TEFL certificate should do you fine. TESOL or TEFL cert can generally be used interchangeably and many TEFL/TESOL certs will have both acronyms written on them. I hope that helps.
    Ted

  • By Joe M, October 2, 2012 @ 9:43 AM

    Ted.

    Thanks for taking the time to help out the ‘newbies’. I have a question that I can never seem to find answers on.

    I have been married for 17 years and we have three school aged children. I have a bachelor degree but zero experience in teaching. My wife fully supports the idea that I teach abroad for half the year to gain some valuable experience and to find myself. I can understand that things might be however difficult. I am a very grounded person. But the amount of wages saved are very important for sending back home.

    What do you think about this idea? Have you witnessed similar situations? Thanks!!

  • By Ted, October 2, 2012 @ 9:59 AM

    Hi Joe,
    If the amount of money you need to save is important, then Korea is probably one of your better options. One major problem though is that pretty much all good jobs will want a one-year contract. In Korea, you probably would not find it difficult to save about US$1000 per month. But an employer who would hire you for six months would be unusual. I’m not saying it can’t or won’t happen, just that you will not easily find such a job. Since you asked . . . I have a couple times worked in another country or major city some distance away from my wife. It is quite good for making both of you miss each other and appreciate each other more. From both sides.
    I hope that helps.
    Ted

  • By Aspring Expat, October 14, 2012 @ 6:47 AM

    Hi Ted,
    Thanks so much for the info, very enlightening. I have an MA and an MS (neither in education though). I also have significant time living/working overseas. Would this qualify me to work at an international school? If so, how do I apply? Thanks,
    aspiring expat:)

  • By Ted, October 14, 2012 @ 9:29 AM

    Hello Buckeye,
    First tier international schools will usually want at least two years previous teaching experience in your home country’s public or private schools at the same level for which you are appling with them. There are some lesser second and third tier schools that might accept your application if you have a TEFL certification or a specialty they need. To some degree then it might depend on the major of your MS or MA.
    I hope that helps.
    Ted

  • By Billy, February 23, 2013 @ 7:10 PM

    Hey Ted,
    I read your other site and hoped you might be able to give some advice on my situation in regards to esl jobs. I want to become an esl teacher and my wife wants to write, we have two little girls that wont start school for quite a while. The plan was for me to work, once I acquired a TEFL Cert., and for her to stay at home with the kids and work on her book. We have acclimated to situations requiring a socially self-sustained family unit and my wife has experience as a home school teacher which was our original plan for our kids to begin with. Does this plan seem feasible or far-fetched? Thanks for any suggestions you can offer!
    Billy

  • By Ted, February 24, 2013 @ 5:09 AM

    Hi Billy,
    Your plan is fine if you have or intend get a graduate degree at some point so that you would qualify to land good jobs in the Middle East or at better international schools where your wages would more comfortably support a family and you would often receive free or subsidized tuition for your children at a good school. Health care cost becomes an issue too when planning for a family overseas. At the language school level (BA/BS level work) your wages will less likely include decent benefits such as health care for a family. Point your education in the direction of an M.Ed. in TEFL or applied linguistics or even an MATESOL. A TEFL certification is a good entry-level job qualification, but you’ll need more than that to sufficiently provide for a growing family. IMO anyway. I hope that helps. Ted

  • By Billy, February 24, 2013 @ 6:39 PM

    Thanks for the advice, that is in fact the route I’m working on now, currently in a BA of English and plan on getting the MA TESOL. I know you have to file but were you required to pay U.S. taxes abroad?

  • By Ted, February 25, 2013 @ 7:32 AM

    Hello Billy,
    It sounds like you are right on track. Taxes? For Americans you receive a “Foreign Income Exclusion” of about US$97,000, but you must file to claim the exclusion. Above that amount you would pay income tax. Consult with a good CPA though and that number changes yearly.
    Enjoy!
    Ted

  • By Billy, March 4, 2013 @ 6:51 AM

    Shoot! One last question if you dont mind while its one my mind. Does an MA in TESOL have to be specifically labelled TESOL? My school offers an MA program in Engish Language Learners Studies. Think that my suffice for some of the picky locations like Dubai? Or should I pursue a TESOL specific label?

  • By Ted, March 5, 2013 @ 8:09 AM

    Hello Billy,
    A graduate degree that would qualify you to teach at better schools and at the college/university level does not necessarily have to be labelled TESOL, though it the most common designation. An MA in applied linguistics is a related and very similar degree as would be an M.Ed. in TEFL. It is quite rare but there are probably a few higher level schools that will have a preference for one over the other, but you won’t find that very often. I wouldn’t make my choice of school based on strictly the TESOL factor. Price, location, quality, reputation of the school etc should probably considered equally or even weighted more heavily. Just my opinion though. Ted

  • By Jason, March 25, 2013 @ 3:14 AM

    Hello Ted,

    I’m about to make a decision as to which MA degree I pursue this year. I have a choice of a MA in TESOL or a M.Ed-ESOL-Focused. Both are from the same school, but I’m leaning to the M.Ed-ESOL, only because is cost less and I believe it will bring the same results to me professionally. What are your thoughts, do you think schools in the Middle East will prefer one title of the other? Also I already have an MBA, do you think I would be able to get a job in the Middle East with little to no experience and work my way up with experience earned in the Middle East once I get one of these MA?

    Best Regards
    Jason

  • By Ted, March 25, 2013 @ 5:23 AM

    Hi Jason,
    I would agree that the two degrees will be roughly the same. If the cost difference is small, I’d do the MATESOL if only because more people are familiar with it. That said, I have an M.Ed. myself. The Middle East will almost always want previous experience and my five years in the KSA says you’ll need some previous teaching experience to succeed there. Get a year or two under your belt before heading for the ME.
    I hope that helps.
    Ted

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