What is the average salary that a finance major can expect? At first glance, it doesn’t appear that a degree in finance is the ticket to a career with stellar pay. The average recipient of a bachelor's degree in finance takes in $101,038 a year. When you consider all bachelor's degree recipients, the median (half earn less, half earn more) is just slightly lower: $93,664.
Dig a little deeper, 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 go on to pursue a CPA license, although it will likely require additional accounting coursework at the undergraduate or graduate level.
- 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 2021 (the latest data available) was $94,170, according to the U.S. Bureau of Labor Statistics (BLS). What's more, employment within the field is expected to increase by 15% between 2021 and 2031.
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 pays a median of $60,000 a year; however, corporate treasurers, who have more experience, make a median salary of $206,500.
Meanwhile, the median pay for budget analysts—the professionals who examine how the organization spends money—is a solid $65,250.
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, an individual does not need a finance degree, though 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 $85,368, 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 2021 was $95,570 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.
Investment banking is one of the more financially rewarding careers, but those in entry-level jobs can work more than 80 hours a week at bigger firms.
According to data from Wall Street Oasis, analysts, who are on the lowest rung, start at anywhere from $100,000 to $120,000. Once you become an associate, you’ll likely bring in 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 2021 was $93,000.
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 $91,000.
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 2021 was $63,380 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 12,600 new loan officer jobs added between 2021 and 2031.
What Careers Can You Choose With a Finance Degree?
There are many careers those with finance degrees can 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. It is much harder than certain liberal arts majors, such as history and philosophy; however, it is not as hard as the "STEM" majors: science, technology, engineering, and math. 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 very lucrative. Some of the careers that pay the most, such as investment banking, involve very long hours, so anyone concerned about work-life balance might want to look elsewhere.
FAQs
The U.S. Bureau of Labor Statistics (BLS) reports that the median annual wage for business and financial employees is approximately $76,570 per year .
Do finance majors make 6 figures? ›
in finance graduates can earn competitive salaries of up to six figures. Graduates with finance degrees might work for employers like private businesses, financial institutions, accounting firms and financial agencies.
Are finance majors paid well? ›
Salaries in the finance industry
According to the U.S. Bureau of Labor Statics, careers in finance pay a median salary of $76,570 — 67% higher than the median salary for all occupations in the nation ($45,760).
How much should I make out of college finance? ›
The national average salary for a finance major graduate in the USA is $67,829 annually or $32.61 hourly.
How much should I be making in finance? ›
Finance Degree Salary
| Annual Salary | Monthly Pay |
|---|
| Top Earners | $118,500 | $9,875 |
| 75th Percentile | $100,000 | $8,333 |
| Average | $86,569 | $7,214 |
| 25th Percentile | $71,500 | $5,958 |
13 jobs that pay over $500k a year
- Actor.
- Author.
- Insurance agent.
- Accountant.
- Professional athlete.
- Hedge fund manager.
- Investment banker.
- Real estate developer.
While finance requires some mathematics training and some knowledge and skills in accounting and economics, it's not necessarily more difficult than any other field of study, particularly for people with an aptitude for math.
Is finance a tough major? ›
Finance is a somewhat difficult major. It is much harder than certain liberal arts majors, such as history and philosophy; however, it is not as hard as the "STEM" majors: science, technology, engineering, and math.
Is finance a stressful major? ›
Drawbacks of a career in finance can include high stress, long working hours, continuing education requirements, and, in some cases, limited job stability.
Is it hard for finance majors to get a job? ›
Getting a job in finance is lucrative, but the field can be extremely competitive. That's especially true if you recently graduated with a bachelor's degree but lack real-world experience. Getting a job in finance with no experience is possible, but it requires some homework and a plan.
While both finance and accounting can be difficult majors, accounting is considered more difficult because it requires more discipline and a lot of math. Accounting is more complex because it relies on precise sets of arithmetic principles.
Are finance degrees worth it? ›
Yes, a finance major is a good major for many undergraduate students. The Bureau of Labor Statistics is projecting 5% job growth in business and financial occupations over the next 10 years. Financial advisor, budget analyst, and investor relations associate are some common careers in the field.
Is finance hard if you're bad at math? ›
Believe it or not, mastery of advanced math skills is not necessary to have a career in finance. With today's technology, all math-related tasks can be done by computers and calculators. That said, there are some basic math skills that would certainly make you a better candidate in the finance industry.
How much money should I be making by 25? ›
Average Salary for Ages 65 and Older
| Average Salary by Age (3rd Quarter of 2022) |
|---|
| Age Group | Average Salary |
|---|
| 16-19 | $31,668 |
| 20-24 | $36,712 |
| 25-34 | $52,156 |
4 more rowsApr 21, 2023
Investment bankers
Investment banker positions are highly competitive, too, due to their earning potential. You must be on your 'A' game to earn this position. But with the right education and drive, you can make this 7 figure salary job yours.
Which major makes the most money? ›
10 college majors that make the most money
- Accounting.
- Biomedical engineering.
- Mathematics or Statistics.
- Finance.
- Nursing.
- Information technology.
- Engineering.
- Computer science.
The top-earning majors are in so-called STEM fields, or degrees in science, technology, engineering and mathematics. Half of the top 10 majors with graduates making the most money are subsets of engineering.
What jobs pay $1 million a year? ›
The jobs of millionaires
- Investment banker.
- Certified public accountant.
- Entrepreneur.
- Day trader.
- Real estate agent.
- Engineer.
- Lawyer.
- Actuary.
The 28% Rule For 100K Salaries
So, if you make exactly $100,000 per year, you make about $8,333.33 per month.
Is finance a stable career? ›
Finance degree jobs can provide relatively high pay, stability, opportunities for advancement and consistent demand projections.
Calculus plays a significant role in the financial market. From stochastic calculus to algorithmic trading and the Greeks, calculus is used to make predictions and optimize trading decisions. The Golden Ratio is embedded in the stock market and is used to identify trends and make informed decisions.
Is finance or accounting better? ›
The field of finance offers more career choices but also less predictability. In some cases, careers in finance might offer higher pay. Careers in accounting can offer more predictable and stable work but less pay in many cases.
What is the hardest job in finance? ›
Most stressful job in finance : Investment Banker (M&A or capital markets professional) Jobs in the investment banking division (IBD) were the runaway choice for the most stressful job on Wall Street and in all of financial services, finishing in the top three of every ballot.
What is the hardest job to get in finance? ›
Financial recruiters have identified the following jobs as among the most competitive to fill: controllers (including hedge fund controllers), tax managers, fund and senior-level accountants, and valuation analysts. Almost all of these roles require a CPA designation, with an MBA being highly advantageous.
Which are the toughest degrees in finance? ›
The Chartered Financial Analyst (CFA) program is widely regarded as one of the toughest courses in finance. It requires an immense amount of dedication to successfully complete and the pass rate is notoriously low, making it a highly sought-after certification in the finance world.
What is the best finance degree? ›
Accounting is the best major for finance because this subject is mandatory for all financial management and banking roles. An accounting major is a staple for finance jobs that require employees to handle many numbers or conduct analyses. Employers also make it a requisite for specialized roles in the capital market.
Does finance major have a future? ›
This makes it a versatile career option that can take you into new and growing industries. The US Bureau of Labor Statistics (BLS) reports that the employment of financial analysts is expected to grow by 9 percent—faster than average—from 2021 to 2031 [4].
Is finance a happy career? ›
A financial career can be very rewarding. If you have a head for numbers and a passion for financial planning, the financial sector might be the perfect fit. However, there are some things you should know about a career in finance before deciding to pursue it.
How much do most finance majors make? ›
Finance Degree Salary in California
| Annual Salary | Hourly Wage |
|---|
| Top Earners | $97,922 | $47 |
| 75th Percentile | $81,765 | $39 |
| Average | $65,480 | $31 |
| 25th Percentile | $39,169 | $19 |
These financial management positions include controllers, treasurers, credit managers, cash managers, risk managers and insurance managers. Since each of these positions requires strong analytical skills along with the ability to work independently, introverts tend to make ideal candidates.
As a whole, the business and finance major jobs outlook is positive. That's good news for students and job seekers planning on a finance degree career. The United States Bureau of Labor Statistics (BLS) has predicted an overall growth rate of 7% for occupations in this group during the 2021 through 2031 decade.
Who gets paid more finance or accounting? ›
Both degrees also offer opportunities for post-graduate certifications, with finance offering more specialized licenses related to a subfield. When it comes to starting salaries, finance majors tend to out-earn accounting majors.
Is accounting or finance more math heavy? ›
The content of accounting majors is, on average, much more technical than for finance majors, and this can make it more difficult. It is focused on strict arithmetic rules, the law, and precise accounting processes.
Is finance major harder than economics? ›
As a finance degree heavily depends on financial analysis and modeling, students may find the material more difficult if they struggle with mathematical concepts. However, students seeking an economics degree might have difficulty understanding abstract ideas like economic theory and policy analysis.
Are finance majors in high demand? ›
Finance is a practical field that will always be in demand. If you're majoring in finance or are a recent finance grad (congrats!), you've got a lot of options to choose from. Plus, a lot of finance roles pay well — even at the entry-level.
Is a finance degree a BA or BS? ›
Is finance a BA or BS? A finance degree is a BS or a bachelor's of science degree.
Why should I major in finance? ›
A finance degree can open doors to a broad range of dynamic professional opportunities — often with high earning potential in diverse industries. Finance majors learn fundamental business skills that can translate to careers in a variety of organizations in the public, private, and nonprofit sectors.
What math is used most in finance? ›
Algebra. Many banking and investment financial models require a financial management professional to solve for variables. Today, programs like Excel take most of the work out of this process, but a sound understanding of the basic principles of algebra is still widely considered to be extremely helpful.
What type of math is used in finance? ›
Financial Mathematics is the application of mathematical methods to financial problems. (Equivalent names sometimes used are quantitative finance, financial engineering, mathematical finance, and computational finance.) It draws on tools from probability, statistics, stochastic processes, and economic theory.
Does finance require accounting? ›
For example, a finance professional often needs the data compiled by an accountant to provide accurate projections about a company's future viability. But, there are several major differences between accounting and finance that are helpful to be aware of before pursuing a career in either.
From age 18-24, only 1% of earners (7% altogether) earn $100k per year or more. This makes these age groups by far the lowest earners in the US. Americans make the most income gains between 25 and 35. Only 2% of 25-year-olds make over $100k per year, but this jumps to a considerable 12% by 35.
What salary is middle class? ›
Pew draws on the same formula used in the SmartAsset report, defining the middle class as those with incomes between two-thirds and twice the national median income. That works out to a national salary range of roughly $52,000 to $156,000 in 2020 dollars for a three-person household.
What percent of people make 100k? ›
In the U.S. 18% of individuals earn more than $100,000, according to Zippia, a career advising company, and like the cost of living, income varies greatly between cities and states.
What is the 7% rule finance? ›
If you earn 7%, your money will double in a little over 10 years. You can also use the Rule of 72 to plug in interest rates from credit card debt, a car loan, home mortgage, or student loan to figure out how many years it'll take your money to double for someone else.
What finance job makes a lot of money? ›
Chief financial officer
Chief financial officers (CFO) oversee business budgeting, cost-related decision-making, and financial teams. The CFO role is one of the highest paying finance jobs because it requires financial leadership, experience, and an extensive network.
What is a six-figure salary finance? ›
“Six figures” simply refers to a number with six digits. Typically used with money, the term covers amounts from $100,000 to $999,999. (Once you hit 1 million, you're in seven-figure territory.) Someone with a six-figure salary makes at least $100K.
What majors make the least money? ›
The lowest-paying college majors are in areas such as theology, social services, the performing arts, education, and leisure and hospitality, the data shows.
What is the number #1 highest paying major? ›
Highest-Paying Majors
Engineering majors made the most right after college, however, graduates who majored in business, economics, and math also made median wages well over $50,000.
What the richest people majored in? ›
Top 7 degrees that make the most millionaires
- Engineering.
- Economics/Finance.
- Politics.
- Mathematics.
- MBA.
Six-figure jobs with a bachelor's degree
- Financial manager. National average salary : $100,178 per year. ...
- 2. Development director. National average salary: $101,180 per year. ...
- Aeronautical engineer. ...
- Electronics engineer. ...
- Sales engineer. ...
- Security engineer. ...
- Compensation manager. ...
- Deputy director.
Highest Paying Jobs in Finance
- Chief Financial Officer. A Chief Financial Officer (CFO) is undeniably one of the highest-paying jobs in finance globally. ...
- Chief Compliance Officer. ...
- Investment Banker. ...
- Financial Analyst. ...
- Investment Specialist. ...
- Financial Manager. ...
- Financial Risk Manager. ...
- Economist.
“Six figures” simply refers to a number with six digits. Typically used with money, the term covers amounts from $100,000 to $999,999. (Once you hit 1 million, you're in seven-figure territory.) Someone with a six-figure salary makes at least $100K.
How to make $100,000 without a college degree? ›
Some of the highest-paying jobs without a degree include technology sales manager, computer and information systems manager, and advertising and promotions manager. Construction manager, elevator and escalator installer, police detective, and web developer are also jobs that can pay $100,000 or more without a degree.
How to make $100,000 out of college? ›
Best jobs with a bachelor's degree that pay over $100,000 per year
- Sales executive.
- Compensation manager.
- Economist.
- Actuary.
- Risk manager.
- Strategy manager.
- Chief financial officer.
- Loan officer.
Some of the main math-related skills that the financial industry requires are: mental arithmetic (“fast math”), algebra, trigonometry, and statistics and probability.
What is the toughest finance job? ›
Most stressful job in finance : Investment Banker (M&A or capital markets professional) Jobs in the investment banking division (IBD) were the runaway choice for the most stressful job on Wall Street and in all of financial services, finishing in the top three of every ballot.
Which major pays more accounting or finance? ›
The field of finance offers more career choices but also less predictability. In some cases, careers in finance might offer higher pay. Careers in accounting can offer more predictable and stable work but less pay in many cases.
Is $100,000 a six-figure salary? ›
How Much Are Six Figures? A six-figure income is usually considered to be $100,000 or more per year. It can also refer to a net worth between 100K and $999K/year. Know what six-figure income means to your industry.
How rare is a six-figure salary? ›
How Many People Make 6-Figure Salaries in the US? A minority of Americans make over $100,000 a year. According to Zippia, roughly 33.6% of Americans make six figures annually.
How rare is a 7 figure salary? ›
That means that 0.35% of Americans earn seven figures or more, based on their tax returns. In other words, out of every 1,000 Americans, only 3.5 reach this level.
