By Aurelio Locsin Updated June 17, 2022
Money is something everyone needs to survive. Yet it can be daunting trying to figure out how to budget and save money. Money managers make the job a little easier for clients by offering advice on where to spend cash and how to save it. These professionals require specialized knowledge and training, so see what it takes for a money manager career.
Money Manager Training
Money managers typically need a bachelor’s degree for entry-level positions, although not in a specific major. Acceptable fields include finance, economics, accounting, business or law.
The course work should include subjects that will prove useful to consumers, such as estate planning, taxes, investments, financial regulations and risk management. Some companies require at least a master’s degree, specifically when dealing when with complex investment instruments such as options or commodities.
The bachelor’s degree takes at least four years of full-time study to complete. A master’s typically requires an additional two years.
Money Manager Certification
Although not always required, certification can enhance job opportunities and demonstrate to consumers that money managers meet industry standards for ethics, reliability and competence. The Certified Financial Planner Board of Standards offers the Certified Financial Planner certification, which is widely accepted in the industry.
This credential mandates completing one of the approved academic programs from colleges and universities, or having professional credentials like a Certified Public Accountant certificate or Ph.D. in business or economics. Applicants must then pass the certification exam, pass ethical standards, and show at least three years of full-time qualifying experience.
Characteristics of a Money Manager
Individual characteristics can play a major role in success as a money manager. Good interpersonal skills are key because managers must make their customers feel comfortable with any financial recommendations and decisions. This includes the ability to listen actively to consumer preferences.
There are also basic financial manager skills these employees need. These include good speaking skills to explain financial concepts in easy-to-understand language. Analytical skills are needed to determine the best options for a client’s financial situation, while math skills are needed to make financial calculations.
Money Manager Salary and Outlook
Personal financial advisers earned average incomes of $119,960 per year as of May 2021, according to the Bureau of Labor Statistics. However, because high salaries skewed the average, a better indicator of actual income might be the median salary, or midway point. It was $94,170 a year.
The BLS expects the number of jobs for personal financial advisers to grow five percent from 2020 to 2030, the same as the five percent growth rate expected for all financial occupations and slower than the eight percent rate for all occupations in all industries.
FAQs
Financial advisors are not required to have university degrees. However, they are required to pass certain exams administered by the Financial Industry Regulatory Authority, or FINRA, which is responsible for governing business between the investing public and brokers to ensure advisors are qualified.
What do you need to know to be a financial manager? ›
Important Qualities
- Analytical skills. To assist executives in making decisions, financial managers need to evaluate data and information that affects their organization.
- Communication skills. ...
- Detail oriented. ...
- Math skills. ...
- Organizational skills.
Financial advisors are not required to have university degrees. However, they are required to pass certain exams administered by the Financial Industry Regulatory Authority, or FINRA, which is responsible for governing business between the investing public and brokers to ensure advisors are qualified.
What are the working conditions for a money manager? ›
Many work in comfortable offices for long hours, between 50 or 60 per week. Travel may also be included, as financial managers generally are required to attend financial and economic association conventions, visit other firms or engage customers.
What are the qualifications for a financial advisor? ›
Most brokerage firms require that all new financial advisor applicants have at least a bachelor's degree from an accredited educational institution. The major can vary, but most are in finance, marketing, or business.
How to become a money manager? ›
How Do I Become a Financial Manager?
- Step1: Earn a bachelor's degree. The first step towards a finance management career is a college degree in finance, business, economics, or a related discipline. ...
- Step 2: Get an internship. ...
- Step 3: Pursue a master's degree or professional certifications. ...
- Step 4: Cultivate work experience.
Qualifications for a Financial Manager
Employers typically require a bachelor's degree in finance or a related field, such as economics, accounting, or business. Financial managers also need at least five years of experience in finance-related positions, such as financial analyst or accountant.
Can anyone be a money manager? ›
Becoming a money manager requires a combination of education, experience, and professional certifications.
What major is money management? ›
Money managers typically have a bachelor's degree. Employers don't always require a specific major, though aspiring money managers often major in finance, economics, accounting, business and law.
Are money managers worth it? ›
According to Northwestern Mutual, once you have amassed at least $250,000 worth of investable assets, you might consider a wealth manager. Because you'll likely pay higher fees to a wealth manager, ensure you require the broader scope of services they provide.
The workforce of Financial managers in 2022 was 1,360,907 people, with 55.6% woman, and 44.4% men. The average age of male Financial managers in the workforce is 44 and of female Financial managers is 45.1, and the most common race/ethnicity for Financial managers is White.
What type of skill is money management? ›
Money management skills are the abilities and knowledge required to manage your finances effectively. It includes skills such as budgeting, saving, investing, and debt management.
How do money managers get paid? ›
How Is a Money Manager Paid? Money managers typically charge management fees ranging from 0.5% to 2% per annum, depending on the portfolio size. For example, an asset management firm may charge a 1% management fee on a $1 million portfolio. In dollar terms, this equals a $10,000 management fee.
How hard is the CFP exam? ›
The certified financial planner exam is likely the hardest test you'll ever take, Dorsainvil says. "Think of the hardest exam you took in college then times it by 10." Preparing to take the CFP exam begins months or even years before you actually sit to take the test.
Can I become a financial advisor at 40? ›
This is for all you career-switchers, and those considering a career change move into financial advisory services: Don't listen to the nay-sayers and the haters: You absolutely can become a successful financial advisor as a second career.
Do you need a CFA to be a financial advisor? ›
CFA and CFP® certifications are both common for financial advisors. For prospective clients, working with an advisor who has one or the other may not make a huge difference. Both certification programs teach applicants how to handle someone's financial future.
What skills do you need to be a finance manager? ›
Strategic and analytical skills
Financial professionals need to possess the analytical ability and know-how to look at those numbers and really understand what the data is saying. Financial reporting, studying market trends, and forecasting are just a few of the roles in which require cutting-edge analytical skills.
What are the requirements for financial manager position? ›
Education, Training and Skills
A financial manager should have a bachelor's degree in business administration, economics, commerce, accounting or a related field. They may also need several years of experience in accounting, auditing, budgeting, financial planning, financial analysis or other financial activities.
Is financial manager a hard job? ›
The role of a Finance Manager is inherently demanding, with the need to oversee financial planning, manage risks, and ensure the fiscal health of their organization. These tasks often extend beyond the typical nine-to-five workday, encroaching on personal time and challenging the very concept of work-life balance.
Do financial managers make a lot of money? ›
According to Bureau of Labor Statistics (BLS) data from May 2023, the median annual salary for financial managers is $156,100. The BLS also reports that the lowest 10% of earners bring in less than $82,870, while the highest-paid 10% claim upwards of $239,200.
