teaching internationally: what we make and what we spend

I know a lot of people think it is unseemly to talk about money and income-- especially using concrete numbers-- but I wish people would, especially other international teachers. When we were job hunting, we had no idea how to interpret the data schools were giving us. We also had no idea what the norm was or the kinds of questions we should ask about a school's salary and benefits.

Since my blog is starting to become more and more popular with people looking to teach abroad, I am going to ignore the hush hush policy so many of us employ in regards to pay talk, and I will let it all hang out in order to highlight important information.

ANNUAL PAY: 

3,236,415  New Taiwanese Dollars

This is what we earn annually as a married teaching couple at my international school in Taiwan, and yes, we are paid in the local currency-- and you know what? So are the teachers who work at the richest and "best" school in the country. Obviously, this can have its flaws. For example, when I first moved here, the exchange rate was 30 NTD to 1 USD. Today, it's roughly 31. In the past, it was 29. Why does this matter? Here's why:

Today's exchange rate means we earn: $105,000 USD annually

2012's exchange rate would mean we earn: $107,000 USD yearly

The best case scenario: +116,000 USD yearly

Ouch. Quite a difference exists between those three numbers. You need to know if you will be paid in local currency, which is actually really common, and you need to keep your eye on how it fluctuates. At the end of the day, this is 100% out of your control and a risk you will have to accept. We will be keeping an eye on the exchange rate; in six years, the rate has fluctuated enormously. Therefore, we pick and choose carefully when we transfer money to our US bank account.

COST OF LIVING BREAKDOWN:

$400 USD per Month

Our necessities cost us about $400 each month. Here is a breakdown of our monthly averages for the essentials, the things that we have to pay:

RENT: $0 monthly
GROCERIES: $200 monthly
ELECTRICITY: $150 monthly
WATER: $5 monthly
GAS (for apartment): $25 monthly
GAS (for two scooters): $25 monthly
Internet: $10 monthly

Our benefits package includes the following:

• We get free housing, and we are very pleased with it. It's a three-bedroom two-bathroom apartment in a nice neighborhood by a lake. Further, my commute is 2 minutes.   
• We pay minimal Taiwanese income tax ($2,000 USD) and no U.S. income tax. 
• Utilities in Taiwan are exceptionally cheap; however, during the warmest months, our power bill might be a little more because we run the AC often. 
• Garbage services are free island wide.
• Our scooter insurance is a minimal fee paid once a year, and we pay around $100 USD in gasoline annually. 
• Taiwan has socialized healthcare, and we each pay about $50 USD per month out of our paychecks to receive good healthcare. Our total out of pocket expense when visiting the doctor or dentist is usually about $5 USD. 
• We do pay into retirement, but into a Taiwanese retirement. This is our biggest objection to remaining at our school after our contracts expire. 
• We do not have cell phones or credit cards, so we do not have monthly payments for either.
• We get free airfare at the beginning and end of our contracts, and we get free airfare every summer to visit home. 
• We get a $1,000 USD shipping allowance. This allowance is used for extra luggage at the airport or boxes sent through the post. 
• We receive multiple bonuses each year; they are predictable both in timing and amount. This past year, I received three bonuses, two of which are predictable and added to our income. 

So what does all of this information mean, month-to-month and long term? It means we have $90,000+ USD as disposable income annually. 

And therein lies the rub for international teachers-- you cannot just look at the salary a school offers and then say yes or no to a job offer. You have to factor in other things like perks and cost of living. It takes a lot of research on your end, but that research is crucial. Looking at the salary offered in certain schools in Zurich, Switzerland would make you think you were going to be rolling around in a pile of money. However, after factoring in the lack of perks like free airfare or housing coupled with a  very high cost of living, you may be lucky to break even. I know a person who worked at one of the top international schools in Paris and then broke contract and left because she went into debt living there.

My salary is $56,000 USD. While it's easy to say nah, I can do better than that and then accept a position in Japan or Holland that pays $60,000 USD, you would actually be in a far better situation in Taiwan with my salary.

So tread carefully and crunch your numbers.

Obviously, my numbers are only valid for me. I work at a mid-level school in Taiwan. Some schools pay less, some pay more. Some won't provide free housing. Some won't provide airfare. What is true for one school in Taiwan is not true for all schools in Taiwan. However, I think if you recruit through International School Services or Search Associates, and you move to a country in Asia that is not Japan or South Korea, you could easily find a situation that is very similar to ours.

Or you could move to Saudi Arabia or Papua New Guinea and literally make $90,000 USD tax free with every perk imaginable, but then you'd have to live in Saudi Arabia or Papua New Guinea, but I guess we are all in it for different reasons. 

A FINAL NOTE

I am not a hermit. I like to eat out, go to the movies, and travel. I am not suggesting to anyone that we will definitely save $90,000+ each year, but I am saying that we could. It is a choice that we will have. This is exactly how we paid off $75,000+ of student debt in less than one year.

Is that a worthwhile trade-- leaving home to become more financially secure than you could have ever imagined?

Maybe. Maybe not.

That is something you have to decide for yourself, but for someone like me who enjoys the adventure of expatriate life, the financial freedom I have found since moving to Taiwan is certainly a boon I am grateful for everyday.

This is exactly why many people use the phrase "golden handcuffs" when talking about international teaching. In some ways, you do feel chained abroad. Why on earth would you go back to America with its overcrowded classrooms and negative culture surrounding education only to make the same salary but have so much less to show for your hard work?!

SUGGESTED QUESTIONS TO ASK POTENTIAL EMPLOYERS

As recruiting season is upon us, here are some questions I think you should ask before signing a contract with any international school:

1. In which currency will I be paid? 

2. Is housing provided? 

3. If not, is a stipend provided and will that stipend cover all of my rent? 

4. Will I pay local taxes, and if so, at what percent?

5. What other deductions will come out of my paycheck?

6. Will I pay my own utilities? 

7. Will local and/or international healthcare be provided? 

8. What kind of retirement, if any, is provided?

9. What banking options are available?
10. Do you provide free airfare/shipping allowances?
11. Are there bonuses?
12. Can I see a pay scale and a pay stub for someone with my education and experience?

And the most important question to ask:

Can I speak with someone currently at your school to better understand the cost of living? 

This thread might also be a good resource, but I have learned to take everything with a grain of salt. People are looking for different things in schools and experiences, and it can be hard to read in between the lines. I know a couple moving onto their 5th international school in the span of one decade. To me, that sounds exhausting, but it is absolutely true that you never really know what you are getting yourself into until you arrive. That too is a risk international teachers have to accept.