What is the average salary that a finance major can expect? People who have a bachelor’s degree in finance take in $124,000 a year on average, according to data collected by Comparably. However, and it becomes apparent just how many finance-related careers pay well above average. Here’s a look at how you can expect to fare in some of the field’s more common occupations.
Key Takeaways
- Graduates with a finance degree can work for a wide range of employers, from Wall Street banks and insurance companies to financial-planning firms.
- Some finance graduates pursue a CPA license, although it will likely require additional accounting coursework.
- Financial analysts are among the better-paid professionals in the field.
- The types of jobs finance majors can choose from vary greatly, including investing banking, equity research, financial planning, budget analysis, and Treasury analysis.
Financial Planner
Some people feel less comfortable making financial decisions, such as buying life insurance and investing for retirement, than others do. That’s why there’s considerable demand for financial planners, who can help these individuals strategize.
Financial planners often work for insurance companies or brokerage houses, often as representatives who make commissions based on the products they sell. An independent advisory representative (IAR), on the other hand, works for fee-based (i.e. non-commissioned) advisory firms or sets up their own planning business. Often, IARs provide a broader range of services, such as budgeting and tax guidance, in addition to offering investment advice.
A personal financial advisor’s median annual compensation in 2022 (the latest data available) was $95,390, according to the U.S. Bureau of Labor Statistics (BLS). What’s more, employment within the field is expected to increase by 13% between 2022 and 2032.
Corporate Finance Professional
Major corporations often have entire departments tasked with helping the company raise and manage the capital that fuels their operations. Finance majors can pursue a number of different paths in corporate finance, most of which tend to pay very respectably.
Those who work on the treasury team, for example, help the company manage its cash, develop a strategy for short-term investments, and analyze foreign exchange (forex) transactions. A job as an entry-level treasury analyst in New York City pays a median of $105,570 a year; however, senior treasury analysts make a median salary of $127,995, according to data from Robert Half, a specialized staffing firm.
Wealth Manager
People who work in wealth management roles help high-net-worth individuals manage their assets, with an eye toward maximizing returns and mitigating financial risks.
Junior-level associates may find themselves handling an array of tasks, including helping to research different investment options and preparing presentations. Later in their career, however, they may take on management roles and shoulder greater responsibility for investment strategies.
To work in the financial sector, you don’t necessarily need a finance degree, but it helps. Individuals with various majors work in finance and have high-paying and well-respected positions.
Individuals who develop this expertise typically make a good living, with the average wealth management professional enjoying an average base salary of $91,091, according to the job-search website Indeed.
Financial Analyst
While the responsibilities of financial analysts can vary based on where they work, their basic role is to help large organizations make prudent investment decisions. They may examine economic trends, meet with a company’s management team, and pore over financial statements in order to develop an appropriate investment plan.
Typically, they use that information to develop financial models that help predict the potential outcome of different strategies.
The work of financial analysts breaks down into two basic categories: Buy-side analysts often work on behalf of insurance companies, foundations, and other institutional investors, providing advice to the money managers responsible for those clients.
Sell-side analysts, on the other hand, are employed by brokerage firms and provide their clients with recommendations on whether to buy or sell certain securities.
The median pay for analysts in 2022 was $96,220 per year, according to the BLS.
Investment Banker
Major investment banks such as J.P. Morgan and Goldman Sachs need people who can advise companies on how to raise capital as well as how to go about acquiring or merging with other businesses.
It’s a fast-paced career that can involve some very long hours—especially at top Wall Street firms—but it certainly pays well for those who are successful.
Entry-level analysts start with salaries from about $100,000 to $120,000, according to Wall Street Oasis data. Once you become an associate, you could earn between $150,000 and $200,000 a year (and those who make it to “vice president” earn even more).
Management Consultant
The role of a management analyst—sometimes known as a management consultant—is another well-paid career you can seek out with a finance degree. According to BLS data, the median pay in 2022 was $95,920.
Management consultants help businesses identify ways to cut costs and boost revenue. To do that, they have to possess strong financial analysis skills as well as an understanding of the competitive landscape in which a firm operates.
They may, for example, help a company focus its resources on markets where the firm can achieve greater profitability.
Accountant
The most obvious path to becoming an accountant is to get a bachelor’s degree in—you guessed it—accounting. But an undergraduate finance degree lets you cast a wider net when it’s time to get a job. And with some extra coursework, you can still sit for the CPA exam, an accreditation that leads to higher pay than non-CPA accounting roles.
Most states require students to obtain 150 semester hours of coursework in order to obtain a CPA license. Strictly speaking, you don’t need a master’s degree to take the exam. But if you’re a finance major, getting there may require a graduate degree in accounting or a Master of Business Administration (MBA) with a concentration in accounting.
According to Payscale, the average annual salary for CPAs is $96,000.
Loan Officer
Before lending money to businesses or individuals, banks need to have a reasonable expectation that the borrower will pay them back. One of the main responsibilities of loan officers is to assess that risk.
They’ll often talk to loan applicants and evaluate their borrowing history before making a recommendation to the bank or mortgage company for which they work.
According to the BLS, the median pay for loan officers in 2022 was $65,740 per year. It appears that the job market for these professionals will remain fairly steady over the next few years, with the BLS estimating just 10,400 new loan officer jobs added between 2022 and 2032.
What Careers Can You Choose With a Finance Degree?
There are many careers those with finance degrees you could pursue. Careers suitable for finance degrees include insurance agents, financial analysts, investment banking, commercial banking, real estate agent, accountant, risk management, and equity research.
Can You Make a Lot of Money With a Finance Major?
Yes, you can make a lot of money with a finance major. The ability to make a lot of money with a finance major comes down to the job an individual chooses. There are a variety of jobs in finance and not all pay equally. Investment banking is one of the highest paying jobs in finance, with recent graduates making between $100,000 to $120,000. As an investment banking career progresses, so does the salary.
Is Finance a Hard Major?
Finance is a somewhat difficult major. The difficulty with finance comes down to its concepts that students would not have experienced before in their lives, the financial lingo in the field, and the concentration of math in the subject.
The Bottom Line
While finance degrees overall may not pay more than other educational tracks, there are plenty of finance-related jobs that are lucrative. Some of the careers that pay the most, such as investment banking, involve long hours, so if you are concerned about work-life balance you might want to consider another career.
