What’s the Average Salary for a Finance Major?

The field of finance encompasses a variety of jobs that require different skill sets and provide different opportunities. A degree in finance can open doors that lead to successful and lucrative careers.

The average salary for a finance major depends on the position. Broadly, entry-level job salaries can range from around $29,000 to $141,200. Certain mid-level salaries can range from $71,625 to about $131,350. And certain senior-level salaries can range from $67,240 to $203,873, and on into the millions (see more below).

Understanding the different types of positions available can help you zero in on the salaries you seek and plot the career path that’s right for you.

Entry-Level Positions and Salaries

At the start of a financial career, most individuals enter jobs that build specific skills and provide industry experience. Common entry-level positions include:

Financial Analyst

Financial analysts help organizations make smart investment decisions by evaluating financial data, detailing market trends, and reviewing company performance.

They usually support senior analysts by constructing financial models, analyzing reports, and preparing recommendations.

Most financial analysts work in banks, investment firms, and corporate finance departments. Over time, they’ll specialize in specific sectors or types of investments. Strong analytical skills and the ability to explain complex financial matters are important in this role.

The average base salary of an entry-level financial analyst is $72,885. Depending on the specific job, company, and location, the salary range is $37,618 and $141,215.

Risk Management Assistant

Risk management assistants help companies identify and mitigate financial risks, whether from changing market and economic conditions, credit issues, or operational challenges.

They analyze data, prepare risk reports, and recommend strategies to prevent potential losses.

These jobs are critical in banking and insurance, where assessing and managing risk is important to business success. The job can lead to advanced roles such as risk analyst, compliance officer, or chief risk officer (CRO).

The average entry-level salary is $48,396 and ranges from $29,000 to $69,500.

Underwriting Assistant

Underwriting assistants help support the process of evaluating clients to determine whether they qualify for financial products like loans.

In such a capacity, they assist loan officers. They gather and review applications and documents, ensuring that the risk aligns with company policy.

They don’t make the final decisions but help prepare the packages for underwriters, who ultimately assess all information and make the final call. This job can eventually lead to a more advanced underwriting position or risk analyst position.

An entry-level underwriting assistant makes a median salary of $56,345. The salary range is $30,379 to $104,504.

Mid-Level and Senior Positions and Salaries

These are examples of more advanced financial positions people may move into after working for some time.

Senior Financial Analyst

Many entry-level analysts become senior financial analysts. With more experience, senior financial analysts are entrusted with more complex deals, evaluating high-level investment opportunities, and building strategic financial plans.

They are often the go-to advisors for department heads or executive teams, helping guide major decisions with data-driven insight.

In addition to analytical work, senior financial analysts mentor and guide junior financial analysts by offering career advice and reviewing their work.

Senior financial analysts are paid an average base salary of $96,995. The salary ranges from $71,625 to $131,352.

Finance Manager

Finance managers function at a very high level within a company. They make decisions that impact company-wide operations.

Their main task is to ensure the financial stability and growth of the business. Their work includes setting long-term financial goals, analyzing financial performance, overseeing budgets, and ensuring the company meets all regulatory and compliance standards.

Finance managers often lead teams, manage relationships with investors and auditors, and assist in making decisions about large company expenses and investments.

It’s a role that requires many years of experience, a strong skill set, leadership, and sometimes an advanced degree or certificate.

Finance managers earn an average base salary of $117,083. The salary range is $67,240 to $203,873.

Factors Influencing Salary for Finance Majors

There are key factors that influence the earning potential of finance majors. These include.

• Education level: Most, if not all, finance jobs require a bachelor’s degree. In addition, completing an internship is usually necessary. While a bachelor’s degree will allow you to enter the finance sector, advancement within the field usually requires a higher degree, such as a Master of Business Administration (MBA), Chartered Financial Analyst (CFA), or a Master of Finance (MSF/MFin) (see the next section for more information).
• Geographic location: While finance jobs can be found almost anywhere, reaching the pinnacle of a career in finance, getting paid the most, and finding the most opportunities will require you to be in well-known cities such as New York, London, Hong Kong, and Singapore.
• Industry focus: There are a vast number of jobs in finance, and they do not pay equally. Working in a mid-level job such as credit risk management pays less than traditional front-office jobs in investment banking or sales and trading. Similarly, roles in private equity or with hedge funds pay a lot more than jobs in retail banking. Understanding specific areas of finance, career opportunities/trajectories, and compensation levels is essential before embarking on a finance career.
• Experience: The more experience you have, the stronger your profile. For example, having an internship under your belt before graduating from a college or university will give you a leg up when it comes to getting hired. Similarly, the more time you’ve spent working, the deals you’ve worked on, and the successful trades you’ve made will affect how your career and salary progress.

Impact of Advanced Degrees on Salary

There are various advanced degrees for individuals who seek to increase their knowledge of finance so as to attain more senior positions.

According to the U.S. Department of Labor, having an advanced degree compared to just a bachelor’s degree meant median weekly earnings of $2,261 vs. $1,770 for men and $1,703 vs. $1,344 for women.

Two of these advanced degrees are:

Master of Finance (MFin): A Master of Finance provides candidates with a deeper understanding of financial theories, quantitative methods, and market structures. Graduates can find senior-level jobs in quantitative analytics, investment management, and financial planning.

Master of Business Administration (MBA): An MBA is highly sought by those in business and finance. It offers a broad business education in areas like management, marketing, and operations, in addition to finance.

A 2024 study shows that you can expect an increase of 60% in your salary after attaining your MBA. MBA grads earn a median starting salary of $120,000 versus $70,000 for those with a bachelor’s degree.

The average MBA graduate makes $4.1 million in their lifetime.

High-Paying Finance Careers

Some finance jobs pay extremely high salaries. They include:

Chief Financial Officer (CFO): The CFO of a firm is responsible for all of the financial aspects of a company. These can include financial planning, budgeting, cash flow management, financial analysis, complying with legal standards, and more. The median salaries for CFOs in the U.S. range between $300,000 and $450,000, with total compensation packages exceeding $1 million.

Investment Banker: Investment bankers help companies go public, usually through IPOs, and are responsible for advising and structuring such deals. They are also involved in completing mergers and acquisitions. Compensation varies widely, but total compensation for a managing director at an investment banking firm ranges from $800,000 to $1.6 million.

Hedge Fund Manager: Hedge fund managers run hedge funds, which are investment vehicles for the very rich and which use unique investment strategies to beat market returns. A portfolio manager at a hedge fund can earn between $500,000 and $3 million.

The Bottom Line

The field of finance offers a wide range of career paths, each with different functions, responsibilities, skill sets, and salary potential.

From entry-level roles like financial analysts and underwriting assistants to senior positions like CFOs and hedge fund managers, salaries are impacted by experience, location, and education.

Finance can be a challenging yet rewarding career for those adept at navigating the industry.