China has become a highly attractive destination for teachers seeking new challenges abroad, and one of the primary reasons for this trend is financial. A common question we receive from prospective teachers is, “How much money can I save while teaching in China?” In this blog post, we’ll provide a comprehensive overview of the potential savings for various types of teachers in China.

Cost of Living

Before discussing earnings, it’s essential to understand the cost of living in China, which varies significantly based on the city. Beijing and Shanghai are the most expensive cities, with living costs comparable to major Western metropolises. A one-bedroom studio apartment in these city centres typically costs around 8,000 RMB per month.

As you move to smaller cities, living costs decrease. For instance, in cities like Shenzhen, Guangzhou, and Chengdu, a similar apartment may be found for about 4,000 RMB per month, while in some Tier 2 and Tier 3 cities, rents can be as low as 1,500 RMB per month. Day-to-day expenses like food, transportation, and entertainment are also higher in larger cities.

However, it’s important to note that teachers in larger cities tend to earn higher salaries to compensate for the increased cost of living. Consequently, teachers generally save a similar amount each month regardless of their location.

For this analysis, we will use Shenzhen as an example. A one-bedroom studio apartment there costs approximately 4,000 RMB per month, and with comfortable living expenses estimated at around 6,000 RMB, the total monthly cost of living would be about 10,000 RMB.

Earning Potential by School Type

A teacher’s experience level and the type of school they work in significantly influence their earning potential and savings. Here’s a breakdown of common school types and their associated salaries in Shenzhen:

Agency

Teacher agencies partner with various kindergartens, public schools, and private institutions. They are ideal for teachers with 0-2 years of experience entering China for the first time. Teachers at agencies in Shenzhen can expect to earn around 18,000 RMB per month after tax. While agencies assist with accommodation, teachers must cover their rent. Teachers receive time off during winter and summer holidays, but pay is subsidized, affecting potential savings.

Estimated Monthly Savings: 8,000 RMB / £850 / $1,150

Training Centre

Training centres focus on teaching English to young learners after school and on weekends. Though the number of training centres has declined, several reputable ones remain. They also cater to teachers with limited experience and offer similar salaries as agencies—around 18,000 RMB per month after tax. Unlike agencies, training centres operate year-round, allowing teachers to save consistently.

Estimated Monthly Savings: 8,000 RMB / £850 / $1,150

Kindergarten

For those interested in early childhood education, kindergartens provide invaluable experience working with young learners. Typically, kindergartens hire only experienced teachers, resulting in higher salaries—about 23,000 RMB per month after tax. Some may offer a housing allowance, while pay during holidays can vary, potentially impacting overall savings.

Estimated Monthly Savings: 13,000 RMB / £1,400 / $1,850

Private Bilingual School

At private bilingual schools, students receive instruction in both English and Chinese. These well-funded institutions generally hire teachers with several years of experience. Teachers in Shenzhen can earn around 26,000 RMB per month after tax. Additionally, housing allowances are common, further reducing living costs. Teachers receive full pay during holidays, leading to significant savings throughout the year.

Estimated Monthly Savings: 20,000 RMB / £2,150 / $2,850

International School

International schools represent the pinnacle of teaching opportunities in China, offering outstanding facilities and high academic standards. To teach here, educators must possess an official teaching license and several years of experience. Salaries are the highest among school types, with teachers earning around 29,000 RMB per month after tax. These schools typically provide substantial housing allowances and generous paid vacation, allowing for impressive savings year-round.

Estimated Monthly Savings: 23,000 RMB / £2,450 / $3,300

Lifestyle Considerations

While experience and school type significantly impact savings, various lifestyle choices can also affect teachers’ finances:

  • Social Life: Frequent outings and socializing can reduce savings.
  • Travel: Teachers who travel during holidays may save less than those who stay local.
  • Dining: Eating out regularly can lead to higher monthly expenses compared to cooking at home.
  • Purchases: Spending on non-essential items will affect overall savings.
  • Dependents: Teachers with partners, children, or pets will see an impact on their disposable income.

Despite these factors, the majority of teachers moving to China can expect to save a substantial amount each month. This financial potential, regardless of whether one is a recent TEFL graduate or an experienced licensed educator, makes China an appealing option for teachers worldwide.