What can a finance major anticipate in terms of salary? A degree in finance doesn’t seem to be the key to a high-paying job at first appearance. An individual with a bachelor’s degree in finance typically earns $101,038 annually. The median income (half earn less, half earn more) for all bachelor’s degree holders is only somewhat lower at $93,664 (half earn less, half earn more).
But when you look a little closer, you’ll find that many jobs in the banking industry pay far above average. Here’s a glimpse at how you would perform in some of the more typical jobs in the sector.
Financial Planner
Making financial choices, including purchasing life insurance and saving for retirement, may be uncomfortable for some individuals. Because they can assist these people in strategizing, financial planners are in high demand.
Financial planners often work as agents for insurance companies or brokerage firms, earning commissions depending on the goods they offer. On the other side, an independent advisory representative (IAR) runs their own planning company or works for fee-based (i.e., non-commissioned) advice businesses. In addition to delivering financial advice, IARs often provide a wider variety of services, such budgeting and tax counseling.
The U.S. Bureau of Labor Statistics reports that the median annual wage for a personal financial adviser was $94,170 in 2021 (the most recent available data) (BLS). In addition, employment in the sector is anticipated to grow by 5% between 2020 and 2030.
Professional in Corporate Finance
Major businesses often dedicate whole departments to assisting them in managing and raising the cash that supports their operations. Corporate finance offers a variety of career options for finance students, the most of which tend to pay quite well.
For instance, members of the treasury team assist the business in managing its cash, creating a plan for short-term investments, and examining foreign exchange (FX) transactions. Corporate treasurers, who have greater expertise, receive a median compensation of $199,750, compared to entry-level treasury analysts, who get a median salary of $60,000 annually.
Budget analysts, who assess how a business spends its money, make a respectable median salary of $54,750.
Financial Manager
In order to maximize profits and reduce financial risks, those who engage in wealth management jobs assist high-net-worth clients in managing their assets.
Junior-level associates may be tasked with a variety of duties, including as assisting to do research on various investment possibilities and creating presentations. However, later on in their careers, they could take on managerial responsibilities and have more investment strategy responsibility.
With an average base pay of $85,348 for wealth management professionals, according to the job-search website Indeed, those who gain this competence often earn a solid living.
Financial Analyst
Financial analysts’ duties might change depending on where they work, but their primary duty is to advise big businesses on wise investments. To create a suitable investment strategy, they could research financial accounts, speak with a company’s management team, and study economic trends.
Typically, they utilize the data to create financial models that aid in predicting the likely course of certain tactics.
Financial analysts’ work may be divided into two categories: Buy-side analysts often advise the money managers in charge of such customers while working on behalf of insurance firms, foundations, and other institutional investors.
On the other hand, sell-side analysts work for brokerage companies and advise their customers on whether to purchase or sell certain stocks.
According to the BLS, the median salary for analysts in 2021 was $81,410 annually.
Investment Banker
People who can advise firms on how to obtain cash as well as how to go about purchasing or merging with other businesses are needed by major investment banks like J.P. Morgan and Goldman Sachs.
Even at the best Wall Street businesses, it may be a fast-paced job with some extremely long hours, but for those who succeed, it pays handsomely.
Investment banking is one of the most financially lucrative industries, although entry-level employees at larger companies may put in more than 80 hours each week.
Data from Wall Street Oasis shows that analysts, who are at the bottom of the pay scale, start at anywhere between $100,000 and $120,000. As an associate, your annual salary will probably range between $150,000 and $200,000 (and those who advance to the position of “vice president” earn much more).
Management Consultant
Another lucrative job you might pursue with a degree in finance is that of a management analyst, sometimes referred to as a management consultant. Data from the BLS show that in 2021, the median salary was $93,000.
Management consultants assist companies in finding strategies to increase income while reducing expenditures. In order to achieve so, they need to be proficient in financial analysis and have a thorough awareness of the market environment in which a corporation works.
They may, for instance, assist a business in concentrating its efforts on clientele that would provide higher profits.
Accountant
Obtaining a bachelor’s degree in accounting is the most direct route to becoming an accountant. But when it comes to finding a career, an undergraduate degree in finance enables you to cast a larger net. Additionally, with some additional education, you may still take the CPA test, which qualifies you for careers in accounting that pay more than those that do not.
In order to earn a CPA license, most states require students to complete 150 semester hours of education. A master’s degree isn’t strictly necessary to take the test. However, getting there could need a Master of Business Administration (MBA) with a specialty in accounting if you are a finance student.
The average yearly pay for CPAs, according to Payscale, is $90,000.
Loan Officer
Banks must have a good faith belief that the person or entity they are lending money to will repay them before they would consider lending to them. Assessing such risk is one of the loan officers’ primary duties.
Before making a recommendation to the bank or mortgage firm for which they work, they often speak with loan applicants and assess their credit history.
The BLS reports that the median annual salary for loan officers in 2021 was $63,380. Considering that the BLS projects just 4,300 additional loan officer positions between 2020 and 2030, it seems that the employment market for these individuals will stay mostly stable over the next several years.
