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How Much Do Finance Majors Make?

August 16, 2023
By AdmissionSight
Young man looking out a chart.

How Much Do Finance Majors Make?

The majority of the highest-paying jobs in the finance industry do not require a graduate degree from their candidates. To earn top dollar, a bachelor’s degree in finance or a field closely related to it may be all that’s required of you.

No matter what, education will always be an important factor to consider when trying to acquire one of the highest-paying positions in the financial sector. Your present or future employment can benefit from the information you obtain from completing one of the many finance degree programs available.

An annual salary of $101,038 is what finance majors make (maximum). When all those who earn more and who earn less are considered, the median salary falls to a little lower number: $93,664.

This article explores some of the highest-paid positions in the subject of finance, with the goal of answering the question “How much do finance majors make?” in a far more comprehensive manner than was previously possible.

What are the valuable skills finance majors should have?

What are some important skills that graduates who majored in finance should have? For one to be successful in their chosen profession, one must possess the necessary skills to successfully manage the many responsibilities and obligations that come with the job.

Let’s take a look at some of the fundamental abilities needed in this line of work before we get into the specifics of how much money people who major in finance make. The following is a list of topics that are covered in finance majors:

Analytical Ability

In the field of finance, the ability to do financial analysis is necessary for a wide variety of different jobs.

View of students working in the library.

In this line of work, having the ability to perform data analysis and draw conclusions from that analysis is of the utmost importance.

Critical Thinking

It is absolutely necessary for anyone who works in the field of finance to be able to make logical choices even when they are working under time constraints.

The application of one’s critical thinking skills is beneficial while carrying out an analysis of potential investment opportunities or financial concepts.

Communication Skills

Jobs in the financial sector usually require connection with a wide range of people who have had a variety of life experiences.

When attempting to convey complex knowledge to other individuals, having great communication skills is an extremely vital requirement.

Mathematics

A solid grounding in mathematics is necessary to have in order to attain an ideal level of success finance majors make. For one, you could try extra-curricular activities that are math-related.

It is crucial to have a full understanding of these ideas because the great majority of financial computations are based on mathematical principles.

Teamwork

Working together with other people toward the accomplishment of common goals is required for the vast majority of jobs in the financial sector. Sports is a common introduction of teamwork to students in the primary and secondary levels.

Three students using a laptop in a table.

You’ll have a better chance of succeeding in situations like this one if you can improve your ability to collaborate with other people.

If they develop these skills, students majoring in finance will have an excellent foundation upon which to build a successful career in the financial business.

What Careers Can You Choose with a Finance Degree?

What kinds of work can you get into if you have a degree in finance? When you choose to major in finance, here is a peek at how you might anticipate doing in some of the field’s most typical jobs.

Accountant

You can still sit for the Certified Public Accountant exam by taking some additional classes; this accreditation leads to higher income than accounting roles that do not require a CPA.

In order to become a certified public accountant in most states, students are required to have completed 150 academic semester hours of study. In the strictest sense, a master’s degree is not required in order to sit for the exam.

On the other hand, if you majored in finance, getting there might need you to earn a graduate degree in accounting or a Master of Business Administration (MBA) degree with an accounting specialization.

Corporate Finance Professional

Large companies typically have entire departments whose responsibility is to assist the company in raising and managing the money that is necessary for the company’s operations.

Students who major in finance have a variety of options available to them in the field of corporate finance, the majority of which offer salaries that are quite competitive.

Councillor talking to a female student.

Treasury team members, for instance, provide assistance to the company in the areas of cash management, the development of a strategy for short-term investments, and the analysis of foreign exchange (forex) transactions.

Finance majors make $60,000 (estimated figure) should they decide to become corporate finance professionals.

Financial Analyst

In spite of the fact that the tasks that are expected of financial analysts can change depending on the company for which they work, the primary responsibility of a financial analyst is to advise large companies on how to make sound investment choices.

In order to devise an effective investment strategy, they can investigate current economic conditions, consult with a company’s management team, and carefully review its financial accounts.

The tasks that are performed by financial analysts can be divided into two primary categories: Buy-side analysts frequently work for customers like insurance companies, foundations, and other types of institutional investors. In this capacity, they offer guidance to the portfolio managers who are responsible for those clients’ investments.

In 2021, the annual salary that was considered typical for analysts was $95,570.

Financial Planner

When it comes to matters of finance, some individuals experience more anxiety than others when faced with issues like purchasing life insurance or saving for retirement.

Because of this, there is a significant demand for financial planners, who are able to assist individuals with developing financial strategies.

Most commonly, financial planners are employed by insurance firms or brokerage houses, typically in the capacity of sales agents who are compensated through commissions based on the items they move.

According to the Bureau of Labor Statistics, finance majors make an annual salary of $94,170 should they want to be in the financial planning industry.

Investment Banker

Major investment banks like J.P. Morgan and Goldman Sachs are always looking for talented individuals who can advise corporations on how to acquire other businesses, as well as how to generate funds for their operations, and how to merge with other organizations.

It is a career that moves quickly and often requires very long hours, particularly at the most prestigious firms on Wall Street, but it pays very handsomely for those who are successful in it.

According to information provided by Wall Street Oasis, the starting salary for analysts, who are at the bottom of the totem pole, can range anywhere from $100,000 to $120,000.

Once you’ve reached the level of associate, you can expect your annual salary to range anywhere from $150,000 to $200,000.

Loan Officer

Before lending money to companies or individuals, banks need to have a reasonable expectation that the money will be paid back by the borrower.

This applies to both corporations and individuals. Risk assessment is a primary duty for loan officers and is one of their primary tasks.

Before making a recommendation to the financial institution or mortgage firm for whom they work, they will frequently interview potential borrowers and investigate their past experiences with borrowing money.

The Bureau of Labor Statistics (BLS) shares that finance majors make $63,380 as loan officers in the year 2021. In addition, the US government agency estimates that there will be a total of just 12,600 new jobs for loan officers created between the years 2021 and 2031.

Management Consultant

A degree in finance can prepare you for a variety of lucrative careers, including the position of management analyst, which is also commonly referred to as management consultant.

The figures provided by the BLS indicate that the median wage in the year 2021 was $93,000.

Management consultants assist firms in determining strategies to increase income while simultaneously decreasing expenses.

To be able to achieve this, they need to have good abilities in financial analysis and an awareness of the competitive environment in which a company operates.

Wealth Manager

A degree in finance can prepare you for a variety of lucrative careers, including the position of management analyst, which is also commonly referred to as management consultant.

an unidentified female student typing something unto a calculator

The figures provided by the BLS indicate that the median wage in the year 2021 was $93,000.

Management consultants assist firms in determining strategies to increase income while simultaneously decreasing expenses. To be able to achieve this, they need to have good abilities in financial analysis and an awareness of the competitive environment in which a company operates.

They could, for instance, assist a company in concentrating its efforts on the markets in which the organization can realize the greatest increase in profitability.

Can You Make a Lot of Money with a Finance Major?

If you major in finance, are there opportunities to make a lot of money? With everything that has been discussed concerning careers in the financial sector and the wages that come with it, we can confidently claim that finance majors make a significant amount of money.

The type of work somebody does after earning a degree in finance will determine how much money they can make with that degree. There is a diverse range of work available in the financial sector, and not all of it pays the same.

Recent college grads can expect to make between $100,000 and $120,000 per year working in investment banking, making it one of the highest-paying occupations in the finance industry.

The amount of money an investment banking professional makes increases proportionally as their career advances.

Is Finance a Hard Major?

Is It Challenging to Major in Finance? 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.

What Factors Influence Salaries for Finance Majors?

The question of how much finance majors make is multifaceted and influenced by a variety of factors. Education, experience, location, industry, and even personal negotiation skills can play a significant role in determining salary.

As a finance major, your earning potential is not only shaped by the specific field you choose but also by the continuous pursuit of professional development and certifications. The finance industry is ever-evolving, and staying abreast of the latest trends and technologies can significantly impact your earning potential.

Moreover, the reputation of the educational institution, the location of your workplace, and the commitment to gender and diversity within the organization can also shape the financial rewards you reap. Understanding these factors can empower you to navigate the financial landscape more effectively, ensuring that you align your career choices with your financial goals.

Does Your School Matter?

Indeed, the school where you pursue your finance major can have a profound impact on how much finance majors make. Top-tier universities and colleges often have strong connections with leading financial firms, providing students with unparalleled networking opportunities and access to high-profile internships.

Business people discussing documents and ideas at meeting

These experiences can lead to lucrative job offers upon graduation. Furthermore, the reputation of a prestigious institution can add weight to your resume, making you a more attractive candidate in competitive job markets.

However, it’s essential to recognize that the quality of education, dedication to learning, and the ability to apply theoretical knowledge in real-world scenarios can also lead to success. While the school’s name might open doors, your skills, determination, and work ethic will ultimately determine your earning potential.

How Does Location Impact Your Earnings?

Location is another vital factor in determining how much finance majors make. Financial hubs like New York, London, or Hong Kong often offer higher salaries to compensate for the elevated cost of living.

Working in these cities can provide access to prominent financial institutions and a dynamic, fast-paced environment. However, the allure of big-city earnings must be balanced against living expenses, lifestyle preferences, and personal values.

Some finance professionals find success and satisfaction in smaller cities or regions with emerging financial sectors. These locations may offer a more balanced lifestyle, lower living costs, and unique opportunities to specialize in niche areas of finance. The decision of where to work should align with both your career ambitions and your personal life goals.

Conclusion

The exploration of how much finance majors make reveals a complex landscape filled with opportunities, challenges, and variables that can influence earning potential.

From the choice of school to location, the financial industry offers a myriad of paths, each with its unique rewards and demands. As the world of finance continues to evolve, so too does the potential for those who are willing to engage with it fully.

The key to success lies not only in understanding the factors that influence earnings but also in aligning those factors with personal values, goals, and aspirations. The question of how much finance majors make is not merely a matter of numbers; it’s a reflection of a dynamic and multifaceted industry that rewards those who approach it with curiosity, dedication, and integrity.

Encouragement to explore and find the right path for you

As you ponder the question of how much finance majors make, remember that the answer is as unique as you are. The financial world is vast, and the opportunities are nearly limitless.

Your journey in finance is not solely about the salary you earn but about finding the path that resonates with your interests, skills, and values. Explore different sectors, network with professionals, seek mentors, and don’t be afraid to take calculated risks.

The right path for you may be a traditional role in investment banking or an innovative position in fintech. It may lead you to the bustling streets of a global financial hub or to a fulfilling career in a smaller community.

Embrace the complexity and diversity of the finance industry, and you’ll find that the question of how much finance majors make becomes a stepping stone to a fulfilling and successful career that aligns with who you are and what you hope to achieve.

Segue to AdmissionSight

Gaining employment in the financial sector typically results in a six-figure salary and extensive career advancement opportunities. Apply to prestigious finance schools if this is something that interests you.

We at AdmissionSight would be pleased to assist you in making your ambition of studying economics at an elite university a reality.

AdmissionSight is the most trusted name in the college admissions advising industry, with more than a decade of expertise assisting students just like you in gaining entry to the colleges of their first and second choices. Please get in touch with us as soon as possible to set up a complimentary introductory consultation.

 

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