Many students think about choosing finance as a subject in college, but one big question comes to their mind:
“Do finance majors get paid well?”
In simple words, yes, finance majors usually get good salaries, especially when they gain experience and choose the right career path. But the answer is not the same for everyone. It depends on many things like job role, location, skills, degree level, and years of experience.
In this informative blog, we will talk about:
- What a finance major is
- Starting salaries for finance majors
- Mid-level and senior salaries
- Example salary calculations
- Different job roles for finance students
- Factors that affect salary
- How to increase your income as a finance major
This blog is written in easy language, so even a class 10–12 student or beginner can understand it clearly.
What Is a Finance Major?
A finance major is a student who studies finance in college or university. This field mainly focuses on:
- Money management
- Investments
- Banking
- Financial planning
- Corporate finance
- Risk management
- Stock market and bonds
A finance student learns how money moves in companies, markets, banks, and governments. They study topics like:
- Financial statements
- Profit and loss
- Budgeting
- Valuation of companies
- Interest rates and loans
- Investment analysis
Because businesses always need people who can handle money wisely, finance majors are in high demand in many countries.
Do Finance Majors Get Paid Well?
The short answer is: Yes, usually they do.
Finance is known as a high-earning field, especially when compared to many other degrees. The salary also grows with time. When a person starts their career, the salary may be moderate. But after some years, it can become very high if they perform well and take the right opportunities.
In general:
- At entry level, a finance major can earn a decent salary.
- At mid-level, many finance professionals start earning good, stable income.
- At senior level, finance professionals can earn very high salaries, bonuses, and incentives.
Let us understand this with more detailed examples and simple calculations.
Entry-Level Salaries for Finance Majors
When a finance major completes their bachelor’s degree and starts working, they usually join in entry-level roles. Some common entry-level jobs are:
- Financial Analyst (Junior)
- Risk Management Assistant
- Underwriting Assistant
- Banking Associate
- Finance Assistant
Example: Entry-Level Finance Salary
Let’s imagine a fresh finance graduate in the US gets a job as a Junior Financial Analyst.
- Monthly salary: $4,500
- Yearly salary = $4,500 × 12
- Yearly salary = $54,000 per year
This is just an example, and the real number can be higher or lower depending on:
- Country
- City
- Company size
- Skills and college reputation
Comparison Example
Suppose another person with a general arts degree gets:
- Monthly salary: $3,000
- Yearly salary = $3,000 × 12 = $36,000
Now compare:
- Finance major: $54,000 per year
- Arts degree: $36,000 per year
Difference = $54,000 − $36,000 = $18,000 more per year
This simple calculation shows that finance majors can earn more than some other fields, especially in corporate or banking jobs.
Mid-Level Salaries for Finance Majors
After working for 3–7 years, many finance professionals move to mid-level positions, such as:
- Senior Financial Analyst
- Finance Manager
- Investment Consultant
- Credit Manager
- Risk Analyst
In these roles, salary usually increases because they have:
- More experience
- Better decision-making skills
- Ability to handle larger responsibilities
Example: Mid-Level Finance Salary
Let’s say a Finance Manager earns:
- Monthly salary: $8,000
- Yearly salary = $8,000 × 12 = $96,000 per year
If this person also gets a yearly bonus of:
- Bonus = 10% of yearly salary
- Bonus = 10% of $96,000
- Bonus = 0.10 × 96,000 = $9,600
So, total income in a year = Salary + Bonus
= $96,000 + $9,600
= $105,600 per year
This simple example shows how bonuses in finance jobs can increase total earnings. Many finance roles, especially in investment banking and corporate finance, offer performance-based bonuses.
Senior-Level Salaries for Finance Majors
At senior level, finance professionals may become:
- Finance Director
- Chief Financial Officer (CFO)
- Senior Investment Banker
- Portfolio Manager
- Head of Risk Management
These roles usually have:
- High decision-making power
- Responsibility over big budgets
- Leadership of large teams
Because of that, they often receive very high salaries and bonuses.
Example: Senior-Level Finance Salary
Assume a CFO of a medium-sized company earns:
- Base salary: $180,000 per year
- Yearly bonus: 20% of base salary
Bonus = 20% of $180,000
= 0.20 × 180,000
= $36,000
Total yearly income = Base salary + Bonus
= $180,000 + $36,000
= $216,000 per year
Of course, this is just an example. In bigger companies, CFOs and senior investment bankers can sometimes earn even more, especially with stock options and profit-sharing.
Common Jobs for Finance Majors and Their Earning Potential
Here are some popular jobs that finance majors often choose and how they usually pay over time (in general terms):
1. Financial Analyst
- Works with financial data, company reports, and markets
- Helps companies make investment and budgeting decisions
Earning pattern:
- Entry-level: decent salary
- With 3–5 years: can become Senior Analyst
- Can later become Finance Manager or Consultant
2. Investment Banker
- Works in big financial institutions
- Helps companies raise money, do mergers and acquisitions
- Work hours are long but pay is usually high
Earning pattern:
- Entry-level: good salary plus bonuses
- Mid-level: very high total pay (salary + bonus)
- Senior-level: extremely high earning potential
3. Corporate Finance Professional
- Works inside a company’s finance department
- Manages budgets, forecasting, financial strategy
Earning pattern:
- Stable salary
- Growth with promotions
- Benefits like bonuses, stock options, and allowances
4. Financial Planner or Advisor
- Advises individuals or families on savings, investment, retirement, etc.
- Can work in banks, firms, or independently
Earning pattern:
- Can earn from salary plus commission
- Experienced planners with many clients can earn very well
5. Risk Manager
- Identifies and manages financial risks in companies or banks
- Works with regulations, policies, and risk models
Earning pattern:
- Entry to mid-level: good and stable income
- Senior risk managers: can earn very good salaries in banks and large firms
Important Factors That Decide Salary
Even if two people both study finance, their earnings may be very different. This is because salary depends on many factors:
1. Location
- Finance jobs in big cities and financial hubs usually pay more.
- For example, salaries in cities like New York, London, Singapore may be higher than in smaller towns.
- But remember: cost of living in those cities is also higher.
2. Industry
Finance majors can work in many industries:
- Banking and insurance
- Investment firms
- Corporate companies
- Government departments
- Consulting firms
Some industries, like investment banking, private equity, and corporate finance, are known to offer higher pay compared to small local companies or non-profit organizations.
3. Education Level
- Bachelor’s degree in finance is the basic requirement.
- A Master’s degree (like MBA) can lead to higher-paying jobs.
- Specialized certifications like CFA (Chartered Financial Analyst), FRM (Financial Risk Manager) can also increase salary potential.
4. Skills
Along with a degree, skills also matter a lot. Useful skills for finance majors include:
- Advanced Excel
- Financial modeling
- Power BI or other data tools
- Basic programming (like Python or R for data analysis)
- Communication and presentation skills
A finance graduate with strong technical and soft skills can negotiate a better salary.
5. Experience
Experience is one of the biggest factors. Usually:
- 0–2 years: Entry-level
- 3–7 years: Mid-level
- 8+ years: Senior-level
The more value you create for a company over time, the more they are willing to pay.
Simple Income Growth Example for a Finance Major
Let’s imagine a simple career path for a finance major:
Year 1–2: Junior Financial Analyst
- Salary: $45,000 per year
Year 3–5: Senior Financial Analyst
- New salary: $65,000 per year
Difference = $65,000 − $45,000 = $20,000 increase per year after some experience.
Year 6–10: Finance Manager
- New salary: $90,000 per year
Difference from starting salary: $90,000 − $45,000 = $45,000 more per year than the entry-level salary.
Now imagine this over 10 years:
- If the person had stayed at $45,000 for 10 years:
Total = $45,000 × 10 = $450,000 - With salary growth (simplified example):
- Years 1–2: $45,000 × 2 = $90,000
- Years 3–5: $65,000 × 3 = $195,000
- Years 6–10: $90,000 × 5 = $450,000
- Total in 10 years = $90,000 + $195,000 + $450,000 = $735,000
- Years 1–2: $45,000 × 2 = $90,000
This example shows how finance majors can significantly increase their earnings over time with the right promotions and roles.
Do All Finance Majors Automatically Earn High Salaries?
No. A finance degree opens the door, but what happens after that depends on the person. Some reasons why a finance major might not earn very high:
- Choosing low-paying industries
- Working in very small markets or towns
- Lack of skill improvement
- Not taking growth opportunities
- No networking or career planning
However, the good news is that finance is a field where you can improve your earning potential by upgrading your skills, experience, and qualifications.
How Can Finance Majors Increase Their Salary?
If you are a current or future finance student, here are some practical tips to earn more in your career:
1. Do Internships
- Try to do internships during your studies.
- Internships give real-world experience and make your resume strong.
- Many companies hire interns into full-time roles later.
2. Learn Practical Tools
Along with your degree, learn tools like:
- MS Excel (advanced level)
- Financial modeling
- Power BI, Tableau, or similar tools
- Basics of programming for data analysis
These skills make you more valuable to employers.
3. Get Certifications
After a few years of experience, you may consider certifications like:
- CFA (Chartered Financial Analyst)
- FRM (Financial Risk Manager)
- Other finance-related professional courses
These can help you get better roles and higher salaries.
4. Improve Communication Skills
Finance professionals often present reports and give advice. Good:
- English skills
- Presentation skills
- Writing skills
…can make a big difference in promotions and salary growth.
5. Choose the Right Industry and City
If your goal is a high salary, try to:
- Target cities with strong financial markets
- Look for industries known for higher pay, like investment banking, consulting, and corporate finance
6. Keep Learning and Networking
- Attend workshops, webinars, and industry events.
- Connect with professionals on LinkedIn.
- Ask mentors for guidance.
The more connected and updated you are, the more opportunities you will find.
Are Finance Majors Paid Better Than Other Degrees?
In many countries, yes, finance majors often earn more than many other general degrees, especially when they work in corporate roles, banks, or financial institutions.
However:
- Some technical degrees like computer science or engineering can also have high salaries.
- Within finance itself, top roles like investment banker or CFO usually pay more than basic finance positions.
So we can say:
Finance majors generally get paid well and have strong earning potential, especially if they choose high-paying roles and industries.
Also Read: What Is The 70 30 Rule In Investing?
Final Answer: Do Finance Majors Get Paid Well?
Yes, finance majors usually get paid well, and their income has strong growth potential over time.
- At entry level, they earn a decent salary that is often higher than many other fields.
- At mid-level, many finance professionals reach very comfortable income levels, especially with bonuses.
- At senior level, they can earn very high salaries, often in six figures (in dollars), along with bonuses, stock options, and other benefits.
However, the actual salary depends on:
- Location
- Industry
- Job role
- Skills and certifications
- Experience and performance
If you like numbers, problem-solving, and money management, and you are ready to work hard and keep learning, a finance major can be a very rewarding and well-paying career choice.
