How Much Does a Financial Manager Earn?
Financial managers monitor the investment and cash management strategies of companies and corporations, government agencies, nonprofits and other organizations. As such, financial managers are well compensated in both the private and public sectors.
According to the U.S. Bureau of Labor Statistics (BLS), there were 653,080 people employed as financial managers in May 2020, earning average yearly salaries of $151,510 (www.bls.gov). The bottom-paid ten percent of financial managers earned approximately $70,830 or less per year, while the top-paid 25% earned approximately $208,000 or more per year.
In May 2020, credit intermediation and related activities companies employed the greatest number of financial managers and offered a mean annual wage of $124,040. Many other financial managers worked in the management of companies and enterprises and earned a mean annual wage of $165,480. Another major employer of financial managers was the insurance carriers industry, which offered on average $170,850 per year. The highest-paid financial managers worked for securities, commodity contracts, and other financial investments and related activites earning on average $206,050 per year.
Important Facts About Financial Managers
|On-the-Job Training||Financial experience required for advanced positions|
|Key Skills||Analytical, organizational, detail oriented, clear communication, decision making, strong mathematical background, reading comprehension|
|Work Environment||Finance and insurance companies, company management firms, technical services, government agencies, manufacturing firms|
|Similar Occupations||Budget analysts, financial analysts, personal financial advisors, accountants, auditors, securities, commodities, and financial service sales agents|
Source: U.S. Bureau of Labor Statistics
Financial Manager Defined
As a financial manager, you will arrange, oversee and organize a myriad of financial activities for a business firm, governmental agency or other type of professional organization. You will also create financial reports and deal with accounting, banking, investing and many other monetary ventures. Several occupations fall under the category of financial management, such as controllers, treasurers, cash managers, credit managers and insurance managers. Each of these specific careers has a particular set of roles and responsibilities. Be prepared to work long hours (typically 50-60 hours per week), attend frequent business meetings and travel for work.
To become a financial manager, you need to have at least a bachelor's degree, preferably in an area involving finances, such as accounting, business administration or economics. Earning a master's degree in one of these areas may improve your chances of finding employment. The BLS predicts that there will be keen competition for financial manager positions, and earning a master's degree will help you stand out from your peers.
You can also earn professional certifications from organizations like the CFA Institute, the Association for Financial Professionals and the Institute of Management Accountants to further improve your resume. In fact, financial managers who work in accounting positions are often required to become certified public accountants.