HSK - Financing Your Future: How to Economize and Save in Modern China -

> Studying, Working and Living in China > Living in China > Teaching English in
China
Financing Your Future: How to Economize and Save in Modern China
Home New Posts

Login: Pass: Log in or register for standard view and full access.





Page 1 of 2 1 2 >






kdavid -

Financing Your Future: How to Economize and Save in Modern China


Recently I have been developing training materials for the school I work for, Sunshine
International Language Center (Harbin) and its partner Will-Excel TESOL. These materials aim to
make the transition from west to east as comfortable as possible for our new teachers.

Over the past few weeks I have noticed a lot of activity on this forum in particular and thought
that this material may be of some use to those of you considering (or already considered and now
in the process of) moving to China to teach English.

Since there are a number of parts to this article (some of which have yet to be written) it may
take a couple weeks for the entire article to be published. Nonetheless, this is a work in
progress and suggestions / feedback are welcome from those of you who have been in this great
country for awhile.

I hope this can help any newcomers to China

[Granted the prices quoted below are going to vary from city to city, the general cost of living
in China in general is going to be substantially lower than in the west.]

What often comes as a shock to most just-off-the-plane expats is the general, dirt-cheap cost of
living that China offers. Prices are generally a fifth of what they are back home, if not less. A
$5 beer back home, for example, is a meager 0.25 cents at your local “BBQ” hangout, the
average value meal at McDonalds $1.88 and spacious, furnished one-bedroom apartments can be found
for around $125 a month. In addition to these low prices can be included the fact that the average
western English teacher is making 300% or more than the city’s locals. It’s not hard to
understand why many expats fall into the trap of living an over-the-top lifestyle here in the
“Middle Kingdom”. The purpose of this article is to acquaint you, as a newcomer, with some
options so that you can make the most, financially, of your time in China.

In the beginning, new teachers often arrive in China with a little home currency. Someone who
brings $500 now recognizes that their once paltry sum of cash has changed from what used to be (on
average) less than a month’s rent back home to what many local Chinese make in three (or more)
months. This can lead to splurging.

New English teachers often fall into the trap of establishing expensive habits. These include, but
are certainly not limited to, taking taxis instead of public transportation, eating out every
meal, consuming familiar western products from brands of snacks and soda to fabric softener and
clothing. It is often easy for newcomers to convince themselves that these extra expenses are
worthwhile. For example, when considering the perceived hassle and uncomfortable process of
traveling by public transit in China, newcomers feel that the extra expenditure of taking a taxi
versus bus or subway is justified. Or, when noting that McDonalds or Subway is relatively cheap
when considering their monthly income, it is natural to think that the time it takes them to
prepare their own food, or the initial discomfort of ordering a meal in a Chinese at the local
restaurant, is not worth the extra trouble.

The Chinese have a saying very similar to that of the West’s “When in Rome do as the Romans
do.”: “ru xiang sui su”, which is (roughly) translated to mean “When you enter another’s
village you should adhere to their customs”. Most English teachers move abroad to study and
teach because they want to be immersed in a different culture. However, the pervasiveness of
globalization does not always force us to adhere to the ambitious goals we held before we left
home. It is easy for expats to be tempted by the convenience and familiarity that earning a high
salary provides: fast food, dry cleaning, quick transportation, VIP treatment at restaurants and
clubs, maid service, etc. However, it should be a priority to consider how living this type of
western lifestyle affects not only your experience in a China, but also your financial future.

[I should note that the following calculations are based on the experience of me and my colleagues
in Harbin and other major regional cities. Hectic mega cities such as Beijing, Shanghai and
Guangzhou will, of course, have a different, higher, cost of living.]

In some cities a foreigner living a modest lifestyle would struggle to spend more than 20 RMB a
day. Twenty RMB a day X 30 days in a month = 600 RMB a month. Take 600 RMB and subtract it from
one’s monthly salary of 4,500 = 3,900 RMB which is (approximately) $500 that could possibly be
put into a bank account and saved for graduate school, traveling, a car, a house, a family, etc.
Taking into account that some foreigners will indulge in western temptations on occasion we can
say that on the average foreigner living a modest lifestyle spends around 1000 RMB a month. In
this case, you can still save 3,500 RMB, or $400, a month. Living in China is an unheard of
financial opportunity for this reason: how much money would you have to save, or how much
economizing would you need to do in the West to be able to save $460 a month? Very few people, for
example, making $3,000 - $4,000 a month in the West can save $400 - $500 a month. However, in
China this is quite easy to do. The trick: “ru xiang sui su”.

That is not to say that foreigners must sacrifice their familiar comforts in order to save money.
Instead, learning how to economize on a Chinese budget while staying within your comfort zone is
easy. Below are some ideas.

1) Don’t frequent places that cater to foreigners. These types of restaurants, bars, clubs and
hangouts often charge four times more than normal local establishments.
2) Visit local markets and restaurants in the area around your home and take time to speak with
the people who work there. Making friends in the neighborhood has a number of benefits, from
getting the opportunity to practice your language skills to getting discounts on produce and a
heads up on what not to order off the menu.
3) Just because it is a western name brand does not mean it is of a better quality, it just means
that it is more expensive. Many western products are produced in Asia anyway. Regardless, China
produces some very high quality name brands of their own that are a fraction of the cost of their
western counterparts.
4) Time management pays in many ways. Get up half an hour earlier every morning and take the bus
or subway instead of a taxi. If you save 20 RMB everyday on taxis you are saving 600 RMB a month,
or 7200 RMB a year, which is equivalent to about $1000. You can save this type of money via time
management in many other ways (e.g. preparing your own meals if your school does not already do
this for you).

The last point that new English teachers should consider is taking advantage of the benefits their
school offers. Good schools offer a free private apartment, free meals on site, free work /
residence visas, free Chinese language classes, and free transportation to and from classes. When
researching schools online ensure that your school offers this type of package. Taking advantage
of these types of benefits can save you thousands of RMB a month, which can be put towards
personal savings, investments and future trips abroad.

Aside from your experience in China offering you a number of unforgettable memories and
experiences, it can also provide a solid financial foundation for future travels and endeavors.
Establishing good habits and finding a good school is key to successfully founding a solid
financial future.



Pleco Software Learn Chinese with our Dictionaries for Palm and Pocket PC.
Learn Chinese in China Learn to speak Chinese 1MonthChinese.com -Mandarin School in China.
Chinese Textbooks Wide range, cheap, varied languages. Also Chinese cartoons, toys, gifts.
Study Chinese in Beijing Affordable Mandarin language courses at BLCU with ChinaUnipath.com.
HNHSoft Dictionary Learn Chinese on Smartphone and PDA with real person's voice.
XueXueXue IQChinese Get beyond the plateau.Take your Mandarin to a new level.
Chinese in Lijiang Short term Chinese study in a beautiful town with a focus on daily life.
MandarinTube Chinese Access to current everyday Chinese language and culture, 24/7.
Learn Chinese Homestay Chinese course, cultural activities & volunteer events in China.
Learn Chinese Online 1-on-1 instant tutoring, diverse courses, native teachers. FREE trial now!
Nihao Chinese Progam Free one-on-one Chinese lesson. Win 5-years of free lessons now!


About Ads (and how to hide them) -- Your message here









wrbt -



Quote:

this case, you can still save 3,500 RMB, or $400, a month. Living in China is an unheard of
financial opportunity for this reason: how much money would you have to save, or how much
economizing would you need to do in the West to be able to save $460 a month? Very few people, for
example, making $3,000 - $4,000 a month in the West can save $400 - $500 a month.

I disagree with this claim.

Of course it depends on where you live and everyone's situation is different but I submit the
majority of people who make $3-$4k per month but can't save $400-$500 are lacking personal finance
skills or the willingness to live under their means, and would struggle to save that amount in
China as well.

Take your 1000RMB/month budget for the foreigner with modest lifestyle in China... what exactly is
that lifestyle? A single person in the US making $3-$4/month probably has their own car and can
choose to live in a pretty nice townhome or even a house with a yard depending on where you are.

There are plenty of reasons to move to China to work but doing it thinking someone will save more
money by living on $125/month since one can't budget to save 10% of a Western salary in the West
isn't one of them.










kdavid -



Quote:

I submit the majority of people who make $3-$4k per month but can't save $400-$500 are lacking
personal finance skills or the willingness to live under their means

I agree.



Quote:

Take your 1000RMB/month budget for the foreigner with modest lifestyle in China... what exactly is
that lifestyle?

I take full advantage of what my school offers. I live in the private apartment provided by the
school (it's a 1 minute walk away from my school). We have an in-house cook who prepares lunch and
dinner for us. I eat breakfast on my own (pastries or such from across the street). I travel by
bus when needed. I go out a number of times throughout the month with friends and/or colleagues;
sometimes to places that cater to expats, sometimes to local hangouts. My life here is quite
normal.



Quote:

There are plenty of reasons to move to China to work but doing it thinking someone will save more
money by living on $125/month since one can't budget to save 10% of a Western salary in the West
isn't one of them.

The purpose of this article is to reach out to those who are considering or have already moved to
China to teaching English and provide some examples of how to construct a budget so that they can
save money while they're here. It's never too late to change your spending habits.










trevelyan -

This reads as if you're trying to convince people that your wages are pretty good, because it's
possible to save $500 a month. If so I agree with wbrt that it's dishonest. The salary might be
decent for English teaching in Harbin, but the emphasis is misplaced: you can save wherever you
are if you don't ever do anything, and most people will expect that they'll be able to buy a drink
at a cafe without blowing the budget.

If you're trying to offer a compelling reason for people to come to your school, I'd simply point
out that X in Harbin buys the same as X in other parts of the country. Is someone better off at
4000 in Harbin than 8000 in Shanghai? If you provide a place to live and the Shanghai job doesn't
that's about even. I'd emphasize the accuracy of the Harbin accent and try to attract students who
care about learning the language instead of just maximizing income.

That being said, the most effective way I know to earn money as a teacher is to set up private
tutoring gigs. What makes a school attractive for people who are here a while is staff policies
that enable extra work (classes arranged back-to-back, the same hours week after week, etc.)

Cheers










kdavid -



Quote:

This reads as if you're trying to convince people that your wages are pretty good, because it's
possible to save $500 a month. If so I agree with wbrt that it's dishonest.

I'll quote my response to wrbt above that states the aim of this article:



Quote:



Quote:

The purpose of this article is to reach out to those who are considering or have already moved to
China to teaching English and provide some examples of how to construct a budget so that they can
save money while they're here.



Also, I don't see how the article is dishonest. It's very possible to save $500 a month in China
while still living a modest lifestyle.

Again, the article is aimed at new teachers in China. You might call this "Financing in China for
English-teaching Dummies" as it attempts to spell out a basic introduction of what one will most
likely encounter over here.










wrbt -

I wasn't so much disagreeing with the intent, just the questionable logic that it would be easier
for someone who doesn't have the self-discipline to save 10% of their salary in the West would
suddenly have no problems saving 75% of their salary in China.

In the vast majority of cases the problem isn't the ability to do so, it's the willingness to live
within means. When you say:



Quote:

Living in China is an unheard of financial opportunity for this reason

It implies some amazing financial advantage to being in China earning money and living cheaply
that I just don't see. You're making an apples to oranges comparison with the people... if said
$3000-$4000 per month earner lived in a studio apartment, took the bus, and made did his/her share
of home cooking on the cheap like you're doing in China how much do you think he could save per
month? If the person in China had a 2BR townhome and owned a newer car could they save 75% of
their income?










cdn_in_bj -

I believe that those new to China will find your article helpful. However, you need to be careful
with the cost figures that you quoted as for the most part they do not apply to larger cities such
as Beijing, and Shanghai. For example, $125/month is not going to get you a "spacious, furnished
one-bedroom apartment" in Beijing - however, it may get you a room in a shared apartment. I
realize that your article is geared towards prospective teachers coming to your school, but if it
ends up getting published on the web it's going to get read by a wider audience. With some careful
rewording you could turn into a selling point for your school over others.



Quote:

Living in China is an unheard of financial opportunity for this reason: how much money would you
have to save, or how much economizing would you need to do in the West to be able to save $460 a
month? Very few people, for example, making $3,000 - $4,000 a month in the West can save $400 -
$500 a month. However, in China this is quite easy to do. The trick: “ru xiang sui su”.

I don't think the above adds anything to your article and should be taken it out. I agree with the
other poster that it sounds like a sales pitch.










cdn_in_bj -



Quote:

if said $3000-$4000 per month earner lived in a studio apartment, took the bus, and made did
his/her share of home cooking on the cheap like you're doing in China how much do you think he
could save per month? If the person in China had a 2BR townhome and owned a newer car could they
save 75% of their income?

Yes, well said. Perhaps it could be noted that it is easier here to give up certain luxuries that
we take for granted in the west (for example, of owning a car), but this also depends on the
individual.










kdavid -



Quote:

It implies some amazing financial advantage to being in China earning money and living cheaply
that I just don't see.

@wrbt

Where in China are you located?



Quote:

If the person in China had a 2BR townhome and owned a newer car could they save 75% of their
income?

How many English teachers living in China fall into this category? I'd be inclined to say not too
many. Those who do, however, have probably already made the financial (among other) commitments to
live in China long-term and therefore already established a budget that permits them to do such
things.



Quote:

I wasn't so much disagreeing with the intent, just the questionable logic that it would be easier
for someone who doesn't have the self-discipline to save 10% of their salary in the West would
suddenly have no problems saving 75% of their salary in China.

If you're working and saving money in the West then you probably wouldn't find this article to be
of much use. This type of person probably also wouldn't be browsing the "Teaching English in
China" boards on the internet. That is, unless, you're looking at making a transition abroad.
Regardless, the article's intended audience is those who are (planning or otherwise) moving to
China to teach English. The article spells out how to save money and budget on an English
Teacher's salary.

However, I do agree with you, as I said above, when you stated that those with budgeting problems
back home will most likely have budgeting problems in China as well. Hopefully, those considering
moving to China to teach English may find some of the above advice useful.

@ cdn_in_bj

Thanks for your advice. I see where you're coming from and it makes sense.

Also, I do understand that the prices quoted within wouldn't work as well within a bigger city
such as Beijing or Shanghai (this difference is commented on in one or two places in the article).










Senzhi -

Can I suggest that if we do earnings/savings comparisons between different countries, we keep the
positions the same: teaching?

There's absolutely no point in comparing earnings/savings of a middle management position in the
EU/US with a teaching position here.

However, if we start comparing teaching earnings/savings, then I would definitely say the market
is more attractive in China, or any other country where TEFL is a big business.

I'm not sure about teacher earnings in the States, but I can definitely say that in the EU they're
in the lower base salaries. Not much savings to be expected, especially since many teachers are
not paid during holidays (which EU teachers have a lot!).

And then I'm not even starting about taxes in the EU ...












All times are GMT +8. The time now is 05:14 PM.














Learning Materials, Mandarin audio lessons, Chinese writing lessons, Chinese vocabulary lists, About chinese characters, News in Chinese, Go to China, Travel to China, Study in China, Teach in China, Dictionaries, Learn Chinese Painting, Your name in Chinese, Chinese calligraphy, Chinese songs, Chinese proverbs, Chinese poetry, Chinese tattoo, Beijing 2008 Olympics, Mandarin Phrasebook, Chinese editor, Pinyin editor, China Travel, Travel to Beijing, Travel to Tibet