What Living Costs Matter for TEFL Teachers?

Why Living Costs Are Half the Salary Equation

A $2,000/month TEFL salary in one country can leave you saving nothing after rent, food, and transport. The same $2,000 in another country might leave $800 sitting in your savings account every month. The difference is entirely in living costs — and understanding them before you accept an offer is one of the most important pieces of financial due diligence you can do.

The Big Five Expenses to Model Before You Move

1. Housing

Accommodation is almost always the largest single expense for English teachers abroad — or your biggest financial win if the school provides it.

Housing included (South Korea EPIK, JET, many Gulf positions): This eliminates your largest expense and effectively adds $500–$1,500/month to your real income.

Housing NOT included (most Southeast Asia, parts of Europe, most online arrangements): You'll need to budget for this directly. Private rooms and studio apartments in popular teaching destinations typically cost:

Ho Chi Minh City / Hanoi (Vietnam): $300–$600/month
Bangkok (Thailand): $400–$700/month
Chiang Mai (Thailand): $250–$450/month
Madrid (Spain): $700–$1,200/month
Prague (Czech Republic): $600–$1,000/month
Tokyo (Japan): $800–$1,500+/month

Budget minimum housing at 30% of your monthly salary as a planning rule, and verify actual rental costs in your target area before accepting an offer.

2. Food

Food costs vary dramatically. In Southeast Asia, eating out regularly is genuinely inexpensive — a full meal from a local restaurant costs $1–$3. In Japan or Europe, the same meal costs $10–$20.

Rule of thumb: Favour countries where local cuisine is affordable and accessible. Teachers who cook Western meals from imported ingredients in Asian countries spend significantly more than those who embrace local food culture.

Monthly food budgets:

Vietnam, Cambodia, Thailand: $150–$300/month
South Korea: $200–$400/month
Japan: $300–$500/month
Spain, Czech Republic: $300–$500/month
UAE: $400–$700/month

3. Transport

Most popular TEFL destinations have good public transport infrastructure, which keeps costs manageable if you use it.

Seoul: Excellent metro, $1–2 per journey. Monthly budget: $40–$80
Bangkok: BTS/MRT plus tuk-tuks. Monthly budget: $30–$80
Tokyo: Exceptional but expensive. Monthly budget: $100–$200
Madrid: Good metro. Monthly budget: $40–$70 with monthly card
Dubai: Car often needed. Monthly budget: $150–$300+

Avoid buying a car unless absolutely necessary. It adds expense (purchase, insurance, parking, fuel) and complicates visa situations in some countries.

4. Healthcare

Countries with strong national health systems (South Korea, Japan, some European countries) include you in public health insurance, usually with employer contribution, at relatively low personal cost.

In countries without comprehensive coverage (many Southeast Asian markets, parts of the Middle East), private travel/expat health insurance is essential. Budget $50–$150/month for a comprehensive policy. Never teach abroad without health coverage.

5. Internet and Phone

Consistent, fast internet is not a luxury for TEFL teachers — it's a professional requirement for most (who supplement with online tutoring) and a quality-of-life fundamental for all.

Most popular TEFL destinations have excellent, affordable mobile data:

South Korea, Japan, Taiwan: Extremely fast, $20–$40/month SIM
Southeast Asia: Generally good, $10–$25/month
Europe: Variable by country, $20–$60/month
UAE: Good, $30–$60/month

Monthly Budget Templates

South Korea (housing included, typical teacher):

Food: $300
Transport: $60
Entertainment/social: $200
Healthcare (after insurance): $30
Phone/internet: $30
Misc/personal: $150
Total monthly spend: ~$770
Salary (after tax): ~$1,700
Monthly savings potential: ~$930

Vietnam (housing NOT included, Hanoi):

Rent: $450
Food: $250
Transport: $50
Entertainment/social: $150
Healthcare (private insurance): $80
Phone/internet: $20
Misc/personal: $100
Total monthly spend: ~$1,100
Salary: ~$1,400
Monthly savings potential: ~$300

UAE, Dubai (housing allowance included, experienced teacher):

Food: $500
Transport (car, fuel): $300
Entertainment: $400
Healthcare (included): $0
Phone/internet: $50
Misc/personal: $200
Total monthly spend: ~$1,450
Net salary (tax-free, housing covered): ~$4,500
Monthly savings potential: ~$3,050

The Most Important Pre-Move Research

Before accepting any position, go to Numbeo (numbeo.com) — a crowd-sourced cost-of-living database — and look up your specific destination city. Check current rental prices for your accommodation type, grocery costs, and transport prices. Talk to teachers currently in that city via r/TEFL or expat Facebook groups.

The difference between a well-researched move and a poorly researched one is often the difference between thriving and struggling financially. The numbers are available — use them.