China’s Cost of Living: How to Budget and Win

At English 1 we always get questions about China's cost of living. Answering these questions can be difficult, because we all have different lifestyles, and one person's luxury is another's necessity. Luckily, one of our bloggers Adam has done some research on how to budget and win in China using the average salary in China.

Let’s start by clearing up some terminology. Chinese currency has two formal names: RMB (Renminbi, which means “the people’s currency” in Chinese) and Yuan, which is the basic unit of the RMB. Informally, Chinese people often refer to money as "kuai", similar to how we might say “bucks” or “quid” in English.

As of 2024 the average monthly income in Beijing has risen significantly. According to recent data from ChinaIRN.com, the average monthly salary in Beijing is approximately ¥11,800. That should be reassuring for prospective English teachers, since entry-level teaching positions often offer salaries that meet or exceed this figure—especially when housing or other benefits are included.

Below is a breakdown of my typical monthly budget. For context, I live in the heart of the city (which explains the higher rent), commute about an hour south to work (hence the elevated transportation costs), and enjoy a relatively indulgent diet.

After surveying my co-workers (myself included), the average monthly rent for a single person came out to ¥3,200. My rent is the highest at ¥4,100, and the lowest among colleagues was ¥2,200.

When it comes to living expenses, it really depends on your lifestyle and whether you opt for imported or local goods. Personally, I try to keep things simple in this area. For example, I spend no more than ¥30 per month on basic toiletries like razors, toothpaste, and other essentials.

Allow me to preface this by saying that I am, by no means, a penny pincher. I was born in the year of the monkey, which here in China is a tell all sign that I am notoriously terrible at money management. In spite of this fact, I wanted to challenge myself to try and spend no more than 100 RMB per week, for as long as I could, on food and living supplies. Instead of going through what I ate for each day of the week, here is the “menu” I stuck with for these few weeks.

• Assorted breakfast items from street vendors (¥5)

• Leftovers (free)

• Instant noodles (¥5)

• A full breakfast from a local restaurant (¥15)

• Leftovers (free)

• 7/11 hot premade lunch (¥7)

• Supermarket boxed rice and a side dish (¥10)

• instant noodles (¥5)

Cook dinner (around ¥20, with enough left over for lunch the next day)

Local dumpling restaurant (¥1 per dumpling – I usually order around 18)

7/11 packaged dinners (curry, chicken patty, etc., around ¥10)

Instant noodles (¥5)

And just like that, to my surprise, I managed to make it through two full weeks without breaking my budget. Take that, student loans! But it didn’t last long — the stereotypical monkey in me returned with a vengeance. Before I knew it, I was back at the fancy Italian restaurant, licking cannoli filling off my fingers. Which brings me to my next section.

Now, I can't speak much for the smaller cities, but one of the main messages I share with friends and family back in the States is that if I wanted to live a completely American lifestyle here in Beijing, I could get very, very close. This is largely due to the abundance of recognisable brands now available in China. In most cities, you can find packaged meats like “Tyson” and “American Select” in the supermarkets. You’ll spot a Starbucks or Burger King on nearly every corner. And perhaps more surprisingly, authentic-style restaurants such as “Homeplate BBQ”, “Annie’s Italian”, and “Lily’s American Diner” have all made their mark in Beijing.

I could easily live for years in Beijing on a diet very similar to what I’d have back home — and in fact, I know people who actually do. But there’s a catch: for American food, you’ll pay American prices. Rather than listing specific prices, I’d now like to give you a visual comparison — just how many of the Chinese food items mentioned earlier you could buy for the cost of a single western item.

Example number one show's just how far your money can go for the price of a western meal. A home plate of pulled pork makes a great treat every now and then, but it really goes to show how much you can save with some home cooking.

Example number two is one close to many of our hearts. Coffee! Many of us can't function without it, so this is one of those things that seems difficult to cut from the budget. But as example two shows, we could buy six sandwiches for the same price. Luckily, English 1 does provide free coffee at work. It's not the best, but it does the job.

Example number 3 is a personal favourite. Annie's Italian spaghetti tastes great, but I could buy 9 pots of instant noodles for the same price.