Where English Teachers Can Save the Most Money Abroad

Teaching English overseas opens up more than just the chance to explore the world — it can also be a surprisingly solid way to build up your savings. For some teachers, the goal is to pay off student loans. For others, it's to travel long-term or even lay the financial foundation for a future back home. Whatever your motivation, the right destination can help you do more than just break even.

But saving money while living abroad isn’t always as simple as looking at salary figures. It depends on where you go, what kind of benefits you receive, and how wisely you live. From the tax-free salaries of the Middle East to the low-cost comforts of Southeast Asia, there are plenty of places where your teaching paycheck can stretch a lot further than you’d expect.

Let’s take a closer look at how to spot those sweet spots — and how to make the most of your TEFL income.

What Impacts Your Ability to Save?

Before comparing destinations, it’s worth understanding what actually affects your bottom line. A high salary might look appealing, but it’s not the only factor — and sometimes, it’s not even the most important one.

💰 Salary vs. Cost of Living

This is the biggest variable. A $3,000 salary in Tokyo might barely cover your rent, while $1,200 in rural Vietnam could go much further. The real question isn’t “How much do I earn?” — it’s “How much do I keep after expenses?”

🏡 Job Perks That Matter

In many countries (especially in Asia and the Middle East), teaching contracts include free accommodation, airfare reimbursements, health insurance, and even end-of-contract bonuses. These extras can save you thousands of dollars a year.

🧠 How You Live

Your lifestyle matters. Are you eating like a local or brunching in tourist cafes? Riding the bus or hailing taxis? The more you immerse yourself in local habits, the more you’ll save — and often, you’ll get a more authentic experience too.

📄 Visas and Taxes

Your visa status can determine whether your income is taxed locally — and in some countries, that’s a big deal. The Middle East often offers tax-free salaries, while in places like Europe, you might need to budget for both taxes and visa fees. Some teachers also choose to work online or freelance, which may bring its own financial considerations depending on the country.

Saving as a TEFL teacher is a combination of where you go, what you earn, and how you live — and when all three align, it can be surprisingly easy to stash away a decent chunk of money each month.

Middle East: Top-Tier Pay, Tax-Free Perks

If your goal is to stack cash quickly, the Middle East is hard to beat. Countries like the UAE, Saudi Arabia, Qatar, and Kuwait consistently offer some of the highest salaries in the TEFL world — often tax-free. Combine that with generous benefit packages, and you’ve got one of the best regions for saving.

• United Arab Emirates: Dubai and Abu Dhabi are the region’s heavy hitters. Salaries for qualified teachers range from $3,000–$5,000/month — tax-free — and contracts typically include housing, flights, and health insurance. International schools and universities are common employers, though competition can be fierce.
• Saudi Arabia: Known for even higher savings potential due to limited spending outlets and full-benefit contracts. However, it’s not for everyone — the cultural restrictions are significant, and women especially may find the lifestyle restrictive.
• Qatar & Kuwait: These smaller Gulf countries offer salaries close to those in the UAE, with similar perks. Demand is growing, particularly in private language centers and higher education institutions.

Typical Requirements:

• Bachelor’s degree (usually in education or English)
• TEFL certification
• 2+ years of experience (often required)
• Cultural awareness and adaptability

Best For: Teachers with credentials and a strong professional background who are focused on saving big, fast — and are open to life in a more conservative cultural setting.

East Asia: High Salaries, Great Benefits, Lower Living Costs

East Asia continues to be a financial sweet spot for TEFL teachers, especially those starting out. While salaries may not match the Middle East, the combination of reasonable costs and generous perks makes it easy to save.

• South Korea: Long considered a TEFL powerhouse. Programs like EPIK provide housing, airfare, end-of-contract bonuses, and up to $2,500/month. Living costs are manageable outside of Seoul, and public transportation is excellent.
• China: Vast opportunities in every corner of the country. Private language centers often include housing, meals, and flight allowances. Salaries can hit $2,500+, and the low cost of living in second- and third-tier cities makes saving easy.
• Japan: Higher salaries (around $2,000–$3,000/month) and the reputable JET Program make Japan attractive. However, the cost of living — especially in major cities — can eat into your income. Frugal teachers can still save, but budgeting is key.
• Taiwan: A favorite among TEFL teachers who want a balanced lifestyle. Wages range from $1,800–$2,400/month, and living costs are lower than Japan. Many jobs offer bonuses and visa support, and the quality of life is high.

Best For: Teachers looking for structure, stability, and a supportive teaching environment — especially first-timers or those without much experience but holding a TEFL certificate and a bachelor’s degree.

Southeast Asia: Lower Pay, Higher Savings Potential

Southeast Asia might not offer sky-high salaries, but don’t overlook its savings potential — especially when paired with ultra-low living costs and a relaxed lifestyle. For many teachers, this region strikes the perfect balance between affordability and adventure.

• Vietnam: A standout in the region for teachers who want both quality of life and room to save. Monthly salaries of $1,200–$2,000 go far in cities like Hanoi and Ho Chi Minh City, where rent, food, and transport are extremely affordable. Many teachers report saving $500–$1,000/month, even while enjoying weekend getaways and great street food.
• Thailand: Salaries are lower ($900–$1,400/month), but the low cost of living and high quality of life keep Thailand at the top of many TEFL wishlists. Public school jobs don’t pay as much, but private and international schools offer better deals. Saving here is possible with smart budgeting — especially outside Bangkok.
• Cambodia: The most relaxed destination in terms of requirements — many schools hire without a degree or experience. Salaries hover around $800–$1,200/month, but housing can cost as little as $200/month. It’s not a wealth-building destination, but you can certainly live comfortably and save modestly.

Best For: Teachers who want a lower-pressure job, low expenses, and a vibrant travel lifestyle. Also great for digital nomads or non-degree holders combining teaching with other income streams.

Latin America: Lifestyle Over High Earnings

Latin America offers incredible diversity, culture, and warmth — but it’s not the place to go if saving is your top priority. Salaries are generally modest, and in some places, currency volatility makes budgeting unpredictable. Still, with smart planning, some savings are possible.

• Mexico & Colombia: These countries offer vibrant cities, great food, and a growing TEFL market. Salaries typically range from $600–$1,000/month, which can cover expenses and leave a small cushion for savings — especially outside major cities.
• Chile & Argentina: These markets appeal to teachers who love culture and nature, but inflation and economic instability can eat into earnings. That said, private tutoring and business English gigs may offer higher pay.
• Costa Rica: A longtime favorite for teachers who value work-life balance and eco-tourism. You’ll earn enough to live comfortably, but rent and food costs are higher than elsewhere in the region — making saving a challenge unless you supplement with private work.

Best For: Teachers who prioritize cultural immersion, Spanish fluency, and a relaxed lifestyle over financial gain. Ideal for retirees, travelers, or those looking to gain experience in a low-pressure setting.

Europe: High on Culture, Low on Savings

Europe is packed with iconic cities, rich history, and irresistible food — but if you're hoping to build a nest egg while teaching, it’s a tougher road. Wages are often modest and competition for legal jobs can be fierce, especially for non-EU citizens.

• Spain & France: Government programs like Auxiliares de Conversación (Spain) and TAPIF (France) pay around $800–$1,200/month for part-time work. It’s enough to cover rent and groceries, but not much more. Private tutoring is where the real earning potential lies, especially in big cities.
• Poland & Czech Republic: These Eastern European countries offer a stronger savings ratio. Living costs are lower, especially outside capitals, and demand for English teachers is steady. Salaries range from $800–$1,200/month — and while not sky-high, you can stretch your money further here than in Western Europe.
• Italy: Beautiful, culturally rich, and… not very profitable. Many teachers in Italy earn $800–$1,400/month, mostly through private language schools. Cities like Rome and Milan have a higher cost of living, which limits your ability to save unless you supplement income through freelancing or tutoring.

Best For: EU passport holders, teachers focused on cultural experience, or digital nomads using teaching as part of a broader income plan. Europe isn’t where you go to bank thousands — but it’s a dream for lifestyle seekers.

Teaching English Online: Location-Independent Income

For many, teaching online is the perfect blend of flexibility, freedom, and financial potential. While hourly rates vary, your ability to save skyrockets when you combine online teaching with living in low-cost countries.

• Earnings: Most platforms pay between $10–$30/hour depending on your experience, specialization, and ability to attract students. Teaching business English or exam prep? You can often charge more.
• Platforms: Beginners often start with sites like Preply, Cambly, AmazingTalker, or Italki. These platforms connect you with students and take care of scheduling and payment.
• Savings Strategy: The real hack? Live somewhere cheap like Vietnam, Mexico, or Georgia while earning in USD or EUR online. Your expenses stay low, but your income remains global — a recipe for strong savings.

Best For: Teachers who want location independence, part-time flexibility, or a side hustle while traveling or living abroad. Great entry point for digital nomads, retirees, or those building a broader remote work lifestyle.

Beyond Salary: How to Stretch Your Income

Even if you’re not earning Middle East-level wages, there are smart ways to grow your bank balance while teaching abroad. It all comes down to spending habits and side hustle potential.

• Live Like a Local: Skip the expat bars and imported groceries. Embrace street food, local markets, and neighborhood rentals — you’ll spend less and experience more.
• Transport Tricks: Public transportation, biking, or walking can save hundreds over time. Avoid pricey Grab/Uber rides unless necessary.
• Cook at Home: Eating out daily adds up. Master a few local dishes or batch cook to reduce costs without sacrificing flavor.
• Side Income: Private tutoring, online teaching, freelance writing, or even local gigs (depending on visa rules) can boost your monthly earnings.
• Level Up Your Teaching: Specializing in business English, exam prep, or niche online classes lets you charge higher rates — especially if you build your own student base.

By blending good habits with a growth mindset, even modest teaching jobs can lead to serious savings over time.

Top Picks for Maximum Savings (By Type)

Use this table as a launchpad. Your personal savings rate depends on how (and where) you live — not just what you earn.

Final Thoughts: Teaching Abroad as a Financial Strategy

It’s easy to assume that teaching abroad is all sunsets and selfies — but for the right person, it can also be a powerful way to build financial momentum. With smart planning, a solid TEFL certificate, and an eye for opportunity, you can cover your expenses, save consistently, and even fund your next big life move.

Whether you’re teaching online from Bali, working at a university in Dubai, or tutoring after school in Warsaw, the formula is the same: maximize income, minimize expenses, and live intentionally. That’s how TEFL becomes more than a job — it becomes a strategy.