Know Your Numbers The True Cost of Teaching (Episode 20260122)

Balance your love of teaching with practical financial decisions. Whether you charge, accept donations, or teach gratis, understanding your value and setting fair prices helps your teaching practice stay sustainable.

When you know your numbers, you can make better choices, set healthier boundaries, and build a teaching practice that lasts.

• Do you track expenses?
• Do you think of your teaching time as a cost, an investment, or a donation?

Talking Points

Your time and skill have value.
Even if you love teaching, recognize that preparation, expertise, and energy are real investments.

Activity

Make a list of this year’s teaching practice expenses — everything you can remember.

Then ask yourself:

• Roughly how much did I invest this year?
• How does that feel compared to the joy and value I received?

You might be surprised at how much you give — and that’s the first step in creating sustainability.

A Real-World Look at the True Cost of Teaching

Let’s start with a situation many mah jongg instructors recognize.

You offer a 3-week lesson series, meeting 3 hours per week, with 8 players, charging $125 per player. On paper, that feels solid and fair.

What it looks like at first glance: 8 players × $125 = $1,000

Most instructors stop the math here and think: “That’s good money for a small group.”

But this number is gross income, not what you actually take home.

The Costs You Quietly Absorb

Even when teaching feels simple, there are real expenses—some obvious, some easy to ignore.

Materials for Students

• NMJL cards ($15 × 8): $120
• Printed color handouts (3 pages, double-sided): ~$24

Subtotal: $144

Costs You Pay as the Instructor

• Gas for travel (3 round trips): ~$18
• Your own meals during no-host lunches (3 sessions): ~$45

Subtotal: $63

Total Out-of-Pocket Expenses: $207

This is money you never see again—but many instructors don’t label it as an expense.

What You Actually Earn Before Taxes

• Gross income: $1,000
• Minus expenses: −$207
• Net income: $793

That’s the real number to pay attention to.

Now Add Time (Often Overlooked)

You didn’t just teach for 9 hours. You also:

• Planned lessons
• Printed and organized materials
• Traveled to and from the venue

A realistic time total:

• Teaching: 9 hours
• Prep: ~3 hours
• Travel: ~2 hours

Total: 14 hours

Effective hourly rate (before taxes): $793 ÷ 14 hours ≈ $56/hour

That may still feel decent—but we’re not done.

Taxes: The Part That Catches People Off Guard

As a self-employed instructor, you’re responsible for self-employment tax, about 15.3%, even if you don’t set money aside: 15.3% of $793 ≈ $121

After self-employment tax: $672 remains

And that’s before federal or state income tax. Real take-home rate: $672 ÷ 14 hours ≈ $48/hour

Now imagine teaching multiple classes a month without tracking this.

Why Instructors Feel Burned Out or Confused

This is where the disconnect happens. Instructors often say:

• “I charge a fair price.”
• “I stay busy.”
• “I should be earning more than this.”

The issue isn’t effort. It’s visibility.

Without tracking:

• Printing feels small
• Meals feel incidental
• Travel feels unavoidable
• Taxes feel like a surprise

But together, they quietly reshape your income.

Why Tracking Expenses Matters (Even If You Teach for Joy)

Tracking isn’t about turning teaching into a cold business. It’s about:

• Knowing which classes are worth repeating
• Deciding when digital materials make sense
• Separating materials fees from tuition
• Protecting your time and energy
• Avoiding resentment or burnout

Most importantly, it allows you to choose:

• Teach for joy
• Teach for income
• Or do a mix—intentionally

The Big Takeaway

“If you don’t track your expenses, you’re making decisions based on what feels profitable—not what actually is.”

Sustainability doesn’t require higher prices. It requires clarity and clarity starts with:

• Tracking one class
• Seeing one full picture
• Making one informed adjustment

That’s how a teaching practice stays healthy—for those who love teaching and for those who rely on it as income.

Reflections

• Sum up your expenses for the year. What surprised you most about the cost of teaching?
• What’s one teaching-related expense you didn’t expect when you launched your teaching practice?
• What small change could help you make teaching more sustainable?