Financial managers oversee the monetary health of a business. They analyze information, create strategies for maximizing revenue, and act as advisors to senior managers within a company.
A financial supervisor’s annual median salary exceeds 100,000, based on the united states Bureau of Labor Statistics (BLS). The BLS also tasks 17% job progress between 2020 and 2030.
This information takes an in-depth have a look at financial managers’ pay and job prospects. It additionally covers crucial components affecting revenue and employment, corresponding to location, trade, education, and expertise for this career.
How Much Does a Financial Manager Make?
The highest 10% of monetary managers earned over $208,000 in 2020, while the lowest 10% made beneath $70,830.
According to the BLS, the annual median salary for financial managers was $134,a hundred and eighty in 2020, which equates to $64.fifty one per hour. The highest 10% of financial managers earned over $208,000 in 2020, whereas the lowest 10% made under $70,830.
This is a fast-growing profession with ample alternatives for a excessive salary, making this role interesting to students in accounting and associated fields.Although there may be high potential for above-average pay, a financial manager’s salary is dependent upon factors like tutorial skills and experience.
Median Annual Salary, 2020
$134,a hundred and eighty
Source: U.S. Bureau of Labor Statistics
Average Salary for a Financial Manager by Education
Financial managers must a minimal of maintain a bachelor’s diploma. Aside from finance, different potential undergraduate majors embody economics, accounting, administration, and business.
Note: The salary knowledge within the following desk does not symbolize solely monetary managers, however professionals throughout all industries who hold a finance diploma.
Prospective monetary managers can pursue grasp’s levels and graduate certifications for a higher salary and job progress. However, any diploma or diploma requires a big funding of time and money. Students pursuing finance administration should consider carefully before committing to greater education.
Finance Management Salaries by Experience
As with most careers, monetary managers’ salaries enhance with expertise. Professionals with fewer than 5 years of expertise earn less than these with two or three a long time in the area. With more time within the position, financial managers acquire abilities that would lead to profession advancement and salary raises.
Financial Manager Salaries by Experience, December 2021Years of ExperienceAverage Annual SalaryEntry-Level ($59,197Early Career (1-4 years)$65,871Mid Career (5-9 years)$80,294Late Career (10-19 years)$78,880Experienced (20+ years)$78,965Source: Payscale
Financial managers with five or more years of expertise can count on the best salary jumps. Maximum development and salary development usually occurs within the first years of a monetary administration profession.
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Salary by Location
While education and expertise are significant components in determining salary, job location additionally plays an essential role. For occasion, financial managers in New York earn the highest salary, round $215,640, however there are solely 45,390 financial managers employed in the state.
In comparison, monetary managers earn a salary of $162,650 in California, but the state has a far larger employment fee at ninety two,670. Factors that contribute to variations in salaries include price of dwelling, inhabitants density, and the native job market.
Top-Paying States for Financial Managers, 2020StateNumber of Financial Managers EmployedAverage Annual SalaryNew York45,390$215,640New Jersey22,900$184,130District of Columbia7,060$177,920Delaware2,310$176,630Colorado7,450$172,400Source: BLS
Top-Paying Metropolitan Areas for Financial Managers, 2020Metropolitan AreaNumber of Financial Managers EmployedAverage Annual SalaryNew York-Newark-Jersey City, NY-NJ-PA56,680$214,670Bridgeport-Stamford-Norwalk, CT6,560$210,180San Jose-Sunnyvale-Santa Clara, CA8,790$192,310San Francisco-Oakland-Hayward, CA19,310$191,380San Francisco-Oakland-Hayward, CA19,310$191,380Source: BLS
Where Should I Work as a Financial Manager?
The best job prospects for monetary managers are locations with thriving economies. The BLS predicts a 17% progress in monetary supervisor jobs between 2020 and 2030, which is greater than average. Those graduating with a finance diploma (or associated subject) ought to find excessive demand for financial managers over the subsequent decade, significantly in metropolitan areas.
Change in Projected Employment from +17%
Source: Bureau of Labor Statistics
Financial managers can discover employment opportunities all around the country, however likelihood is higher in city areas than rural areas. Because finance administration involves enterprise and financial transactions, booming monetary sectors in big cities make up a big portion of the job market.
According to BLS data, New York, New Jersey, and Washington D.C. have the highest-paying financial manager jobs. Connecticut, Massachusetts, and Illinois are some states with the very best concentration of jobs. The salary of a financial manager varies based on location, trade, and the specific field of work.
Top-Employing States for Financial Managers, 2020StateNumber of Financial Managers EmployedAverage Annual SalaryCalifornia92,670$162,650Texas46,340$148,860New York45,390$215,640Illinois41,460$148,620Massachusetts33,320$158,990Source: BLS
States With the Greatest Projected Increase in Employment for Financial Managers, Greatest Projected Percentage IncreaseStatePercent Projected Change, Average Annual OpeningsUtah44.4%1,180Nevada30.3%730Colorado30.1%950Texas30%4,920Arizona28.8%580Source: BLS
Most Projected Average Annual OpeningsStatePercent Projected Change, Average Annual OpeningsCalifornia18.6%10,220Nevada30.3%730Texas30%4,920New York21.7%4,810Massachusetts13.1%3,420Florida22.7%3,370Source: Projections Central
Top-Employing Metropolitan Areas for Financial Managers, 2020Metropolitan AreaNumber of Financial Managers EmployedAverage Annual SalaryNew York-Newark-Jersey City, NY-NJ-PA56,680$214,670Los Angeles-Long Beach-Anaheim35,700$158,070Chicago-Naperville-Elgin, IL-IN-WI34,420$156,490 Boston-Cambridge-Nashua, MA-NH29,200$164,500Washington-Arlington-Alexandria, DC-VA-MD-WV21,120$177,140Source: BLS
The BLS notes the banking business has the best concentration of monetary managers, employing over 98,570 professionals.
Financial managers will find employment in any industry where finance, knowledge analysis, and transactions play a key position. The BLS notes the banking industry has the best focus of economic managers, employing over 98,570 professionals. This consists of fields similar to lending, brokerage, and mortgage.
Business administration comes a close second, using seventy four,260 monetary managers. Financial investment and securities is the very best paying trade for monetary managers, with a mean salary of $206,050.
The day-to-day actions and the salary of a monetary supervisor range. Some industries contain managing cash flow, directing investments, and making ready credit score reports. Other sectors may have duties like providing financial recommendation, revenue planning, and staying on top of current and future tendencies in the business.
Top-Paying Industries for Financial Managers, 2020IndustryNumber of Financial Managers EmployedAverage Annual SalarySecurities, Commodity Contracts, and Other Financial Investments and Related Activities41,920$206,050Other Information Services3,130$204,410Monetary Authorities-Central Bank630$200,780Cable and Other Subscription Programming310$196,520Computer and Peripheral Equipment Manufacturing990$195,340Source: BLS
Top-Employing Industries for Financial Managers, 2020IndustryNumber of Financial Managers EmployedAverage Annual SalaryCredit Intermediation and Related Activities98,570$124,040Management of Companies and Enterprises74,260$165,480Accounting, Tax Preparation, Bookkeeping, and Payroll Services42,750$175,200Securities, Commodity Contracts, and Other Financial Investments and Related Activities41,920$206,050Insurance Carriers26,990$170,850Source: BLS
Questions About the Income of a Financial Manager
How much money does a monetary supervisor make?
According to BLS information from May 2020, a financial manager can make as much as $208,000 or as little as $70,830 per yr. In some states, a monetary manager could make near $250,000 a yr on average.
What is the common salary of a monetary manager?
The BLS notes financial managers earned a median common salary of $134,180 in 2020. This figure can change depending on career stage, location, trade, and training stage.
What are the top-paid jobs in financial management?
Graduates in monetary administration can discover a quantity of doubtlessly rewarding roles in various industries. Some of the best-paying jobs in finance management embody monetary managers, economists, and financial analysts.
Where is one of the best state to work as a monetary manager?
New York, New Jersey, and D.C. at present offer the top-paying monetary supervisor jobs in the U.S. The common annual salary for a financial manager in New York was $215,640 as of May 2020.
What is the best business to work in as a monetary manager?
The finance and insurance coverage trade was the top employer for financial managers in 2020, adopted by professional, scientific, and technical services, and enterprise management. These industries have doubtlessly rewarding jobs for financial managers and a bright outlook and career advancement alternatives.