Wondering how much the cost of living will be when you’re teaching in China?
Due to the currency exchange rates, a lot of foreigners are confused as to whether the earnings in China (10,000 ~ 15,000 RMB, around 1,500 USD ~ 2,200 USD per month) would be enough for them to have a good living.
Is it expensive to live in China? Is it cheaper than living in the US? How much cheaper then?
In the United States for example, you can make quite a bit of money, but a lot of it goes to pay your bills.
Over in China, you can earn a good living as well, but you won’t lose as much of it when you pay your bills each month. In fact, you may be surprised at how much you can do with the money that you are earning.
That means that you can do much more and really enjoy life when you are living there!
We are going to do a breakdown for each of the main categories comparing China and USA. You will see how cost of living in China combined with your salary allows you to have a great lifestyle!
A distinct comparison between cost of living in China and USA:
Cost of living comparison: USA vs China (Numbeo Data)
Note: While there will be a bit of variance between cities with a more noticeable difference between rural and big city life, the cost listed below is an average number taken for your reference.
Rent in China:
Well, over in China, you can pay as little as $300 and as much as $700 per month depending on where you live. The major cities will have the higher rents, while the outskirts of the city are much cheaper.
A massive money saver!
However, when you are teaching over in China, your school will help arrange your apartment either through allowances or provided for free. Depending on your contract, the way it’s arranged can vary. They can either deduct it from your pay each month or include it in your contract. It all depends on the school you decide to work for.
Rent in USA:
Rent is always one of the biggest bills that you need to pay each month.
In fact, over in the USA, you probably had to put out $800 per month minimum for an apartment unless you were still living rent free with mom and dad.
Food in China:
Food in China can be very cheap, but it also depends on what you are buying.
How cheap it can be?
For basic grocery, rice is approximately costing $10 for a five-kilogram bag. Cooking oil is pricey, and chicken is reasonably priced at about $8 per kilogram. You can pick up many different fruits and vegetables for less than $10 per week.
It is very possible to purchase all the groceries that you need for one week in China for $30 or less and actually still have food left over for the following week!
You want to experience the local cuisine and ambiance. Don’t worry, you can eat out numerous times a week and never break your budget!
You can grab many great and filling finds like a big bowl of noodles for the equivalent of a dollar, usually about 1 or 2 dollars. Street eating is just as cheap. Grabbing baozi (steamed stuffed buns) or even fried rice as you rush off to the subway costs roughly the same. A basic dish of beef and noodles will cost you about $2 and many other meals are about the same. If you choose to grab a pint of beer with your meal, that will cost you about $1.
And there are A LOT of choices as well.
The food options will surely dazzle you, and you can keep it on the cheap side. Once you start craving food from back home though, that’s where it gets expensive. Western food definitely costs more but sometimes it’s worth it to get that taste of home.
Still, you can manage a good budget by shopping smart and cooking for yourself in your apartment.
Food in USA:
In the USA, food prices are continuing to rise, which means you are probably spending at least $50-$75 each week to feed yourself. And, that is if you are not going out to eat all that often.
If you choose to eat out in the US, you can easily pay $15 to $25 per meal and that’s if you don’t have a drink or choose to have only one.
Those prices can be even higher depending on where you live and the restaurant that you choose.
Transportation in China:
Most of the time, schools will usually try to arrange your apartment near where you work, especially if you are not in a metropolitan cities like Beijing, Shanghai, the apartment that you live in when you are in China is so close to the school that you can easily walk there every day. By walking to your school, you can save a lot of money on transportation costs.
The buses are incredibly cheap, so even if you couldn’t walk to your school, you could do it for less than a dollar (10 to 30 cents) each way.
The subway is a little more expensive (still fairly cheap though!), but worthwhile if your destination is further away. Subway costs can be about 50 cents to 1 dollar, depending on how far you’re going.
Taxis are more expensive, like everywhere else in the world. But it’s most certainly worth it when you need to get somewhere faster. You can also try your luck with Didi, China’s answer to Uber. If you are in a hurry, the price tag is totally worth it.
Transportation in USA:
Over in the USA, you probably had your own car to drive around in, which meant you were possibly paying for your car, the insurance, and the gas that you used each week.
If you didn’t have a vehicle, you may have utilized your local bus, a taxi, or the subway. Each one of those trips would have been a few dollars each way, or more, if you were taking the taxi to further destinations.
Utilities in China:
Utilities is what gets everyone’s budget each month and they include electricity, water, gas, telephone, and Wi-Fi.
Over in China, some of these may be included with your apartment, which means that you will not need to pay for them.
However, if you do, you should plan on spending approximately $100 or less for everything each month.
For example, mobile phone bills. As a foreigner, a prepaid phone is your best option. You can find good prepaid plans for around 200 RMB a month (can be cheaper depending on your needs), which is about $30 to $40. That’s much cheaper than the states.
Utilities in USA:
Back in the USA, all these things can add up $300 per month or more depending on where you live, how much heat or air conditioning you need to use, whether you get your water for free each month, and what type of phone and internet plan you have.
Entertainment in China:
A ticket to one of the new English Language films will only cost you a couple dollars and there are plenty of other things that you can do for just as little.
Dining out with friends and colleagues and participating in enthusiastic karaoke fun are the two most popular entertainment options after work. Both of them don’t really cost much money.
Entertainment in USA:
In the United States, you would probably be lucky if you had money left over each month to go out and have a little fun!
With movie tickets costing $16 each, concert tickets running between $40 and $200 or more each, and other entertainment options not being much less, you wouldn’t be doing too much each month.
Enjoy your life in China!
As you can see, it doesn’t cost that much to live in China and the difference means that you can save a ton of money while you are living and having the time of your life over there!
Below is a simple table of cost of living in China:
Cost of living in China
Of course, much of your cost of living in China really depends on how you plan to live.
If you want to live it up and enjoy yourself, you’re going to be saving much less of what you earn.
While the cost of living in China is indeed cheaper than most places, particularly when it comes to healthcare or home repairs, there is still room for luxury.
The best thing you can do is remember to live within your means so you can use your earnings to embark on fantastic voyages during your time off.
So, spend wisely.
Can you save money while teaching in China?
What if you want to Save Money While Teaching in China?
Our teacher from Chongqing has writen up a brief guide for you. Click here to read the guide!