Careers in finance

Finance is the study of investments, banking, money, capital markets, leverage, and credit. Finance professionals create strategies to ensure the long-term financial success of organizations or individuals. In the public sector, financial and credit analysts and tax examiners help governments and NGOs manage revenue, expenditures, and debt.

Finance careers are often extremely well compensated, making this a highly competitive field. Investment bankers, portfolio managers, and securities traders are among the top earners in finance.

A bachelor’s degree in finance or a related field is the minimal educational requirement for this field, but many finance professionals pursue advanced degrees, including MBAs or master’s degrees in finance, accounting, economics, or mathematics.

There are many career paths one can take with a finance degree, but most fuse data-driven, quantitative work with interpersonal, client-facing tasks. Combined with the responsibility associated with money management, these factors make finance careers uniquely dynamic and exciting.

What is finance?

Finance is the creation and management of money and investments. This can entail managing financial assets likes stocks and bonds for institutions or individual clients, creating financial strategies and forecasting growth, and keeping auditable financial reporting and statements. Finance requires an understanding of scientific fields like statistics and economics, but also strong interpersonal skills for building robust client relationships.

Fields of finance

Finance professionals operate in 3 main domains: public finance, private finance, and corporate finance.

Is finance a good career path?

A successful finance career is among the most lucrative professionals paths you can pursue. Additionally, virtually all companies and industries employ finance professionals, so job demand and security are both high in this field. In fact, professionals in accounting and finance are among the least likely workers to feel concerned about job security.

Best paying jobs in finance

Some industries and sectors are inherently riskier than others. However, as with investments, with risk comes reward. Professions tied directly to volatile financial markets are the prime example of high-risk/high-reward finance careers. These careers – investment banking in particular – are also notoriously stressful, often as a result of highly competitive work environments.

Below, you can explore some of the best paying jobs in finance and the overall finance job outlook. In most of these professions, additional compensation in the form of bonuses and commissions is regularly earned, adding significantly to the listed salaries.

» Read: Tips for passing the CPA exam

While there are many routes into this field, below are some common steps that can help kickstart a career in finance.

Step 1: Study a relevant field

Bachelor’s degrees in finance, accounting, economics, business administration, math, or statistics lead most directly to careers in finance. Take classes that interest you and are relevant to your career goals, but should include at least some of the following:

• statistics
• calculus
• micro and macroeconomics
• international finance
• financial markets and structures
• securities
• corporate structures
• entrepreneurship
• FinTech and cryptocurrency
• econometrics

Step 2: Specify your studies to your area of interest

Studying something more specific to the finance industry, like financial accounting or financial investigation, can help open doors in the industry. Consider also participating in relevant extracurricular activities, like an investment management club.

» Read: How to choose a college major

Step 3: Seek out internships in the financial industry

Internships provide work experience and important networking connections with professionals in the field. They also offer a taste of what working in finance is like.

Often, one’s first job in finance can come from an internship. Many banks, including J.P. Morgan, Goldman Sachs, and Morgan Stanley, offer competitive, high-paying internships that can lead to jobs with those institutions down the road.

Step 4: Build connections with alumni from your university

Seek out connections with alumni who are employed at companies you want to work for. They are an important source of guidance and mentorship and can provide information about job opportunities.

Many schools have alumni networks to connect students with graduates in their chosen field, which can help with making and maintaining connections. There are also networking events hosted by schools and financial institutions to help students meet future mentors and employers.

Step 5: Acquire relevant certifications

Several financial fields, such as accounting or stock brokerage, require certifications before you can begin practicing. Traders and brokers, unless they are trading only on their own behalf, need a Financial Industry Regulatory Authority (FINRA) license. Other designations are optional, but can significantly improve job prospects – these include Chartered Financial Analyst (CFA), Certified Financial Planner (CFP), and Financial Risk Manager (FRM).

Step 6: Begin at an entry-level position and work your way up

While some financial careers are highly lucrative from the start, many people must work a few years in the industry before making upwards of $100,000. Do not be discouraged – as your experience grows, so too will your earnings and responsibilities.

Step 7: Stand out from the crowd by earning a master’s

While a graduate degree is by no means required for entry-level roles in finance, it can help you stand out in this highly competitive field. Depending on your aspirations, a master’s in finance or an MBA with a finance concentration may be ideal.

» Read: The value of a master’s degree

Comparing finance vs accounting

Accounting is closely related to finance, and both types of professionals may manage revenues and assets, compile financial statements, and analyze liabilities. However, where finance is future-oriented and focused on making forecasts of financial outcomes, accounting revolves around compiling accurate reports of past fiscal activities for internal decisionmakers and external partners or stakeholders.

If you’re looking for a lucrative and in-demand accounting profession, consider becoming a Certified Public Accountant.

Final thoughts

Finance careers can be dynamic, rewarding, extremely well compensated, and are in consistent demand, but they are also not for the faint of heart. A UK study found that 95% of finance professionals report that work-related stress has a significant and tangible effect on their lives.

If you think you have what it takes to survive and thrive in this field, start by exploring our degree rankings to find the right bachelor’s program and begin your career journey.