HBR Staff; Andriy Onufriyenko/Getty Images
Summary.If you’re considering a career in finance, a good way to get your foot in the door and build a strong foundation for your growth typically involves pursuing one of two paths: retail finance or institutional finance. How do you know which path is right for you? Consider the following:
- Retail finance typically involves dealing with the general public. These professionals service customers that include individual investors and small businesses. The most notable designation for finance professionals working in this space is the CFP, certified financial planner.
- Institutional finance generally refers to working with large institutions such as banks, hedge funds, and other business entities. The premier designation in this space is the CFA, chartered financial analyst.
- Retail finance offers the flexibility of working in almost any locale. Institutional finance often implies that you’re an employee of a large institution, and you likely will have less opportunities to work remotely.
- Retail finance, such as being an independent financial advisor, can mean working with new customers every day, but often doing so alone. Institutional finance usually means working on a team within a department that’s part of a larger department, meaning there is more of a hierarchy.
- People in retail finance are more likely to obtain a bachelor’s and then pursue necessary insurance and investment licenses or designations specific to their career and clientele. People in institutional finance may have to obtain a master’s to move up the ladder.
- The average salary for afinance major is $101,038. Pursuing a career as a financial advisor or another form of financial sales can go well beyond this number, whereas a career in corporate America or the government typically stays close to it.
“Can you speak another language?” The hiring manager read the puzzled look on my face.
FAQs
If you're good at math or like to work with numbers, this may be the career to pursue. If you like to solve complex problems or if you are interested in organizing information, you might want to learn more about this career path.
How do you know if finance is the right major for you? ›
If you are interested in solving problems in creative ways or helping companies to plan how to grow their revenue or maintain profitability, a finance major is right for you. A Bachelor of Science in Finance will help you develop multiple skillsets with a great outlook for success after your graduation.
Is finance a good career path for you? ›
Finance degree jobs can provide relatively high pay, stability, opportunities for advancement and consistent demand projections. Careers in finance may also offer flexibility for employees by allowing them to work remotely or in hybrid environments.
How to know if finance isn't for you? ›
Still, a career in finance isn't for everyone. If talking about money bores you, for example, you might want to choose a different path. Similarly, if math was never your subject, it's not a dealbreaker, but it is a skill you'll need to practice regularly in this field.
What attracts you to a career in finance? ›
I'm drawn to finance because it provides a comprehensive understanding of an organization's financial health, risk management, and investment decisions. By pursuing a career in finance, I can strengthen my ability to analyze financial data, provide strategic insights, and guide organizations towards sustainable growth.
Why is it so hard to get a job in finance? ›
The finance industry is famously hard-charging, especially at the junior levels, and you need to show you can handle it and more. Good references are valuable no matter what, but, more importantly, impressing your bosses during an internship can be a great way to open doors for a future full-time job with that company.
How difficult is a finance degree? ›
Finance degrees are generally considered to be challenging. In a program like this, students gain exposure to new concepts, from financial lingo to mathematical problems, so there can be a learning curve.
What type of person should major in finance? ›
A natural tendency toward being analytical is common among finance majors. They can hone their analytical skills by practicing scenarios that represent situations that could occur during the course of their future careers. One of the key personality traits of finance majors is the innate ability to think logically.
Is finance math heavy? ›
One thing that's for sure is the high amount of math you will need to study. Finance is a mathematical discipline, so if you aren't as comfortable with math as with other ways of thinking, you may find it more challenging.
What is the hardest finance job to get? ›
1. Investment Banker. Roles in investing banking are highly sought after. For investment bankers, it's often a higher competition to land a role in one of the largest firms.
Cons of majoring in finance:
- Competitive job market: While finance is in high demand, it's also a competitive field with many qualified candidates. ...
- Stressful work environment: High-paying finance positions often come with high stress due to heavy workloads, tight deadlines, and long hours.
In general, it is not harder to find a job with a degree in finance than in accounting. However, there are a few factors that can make the job search more competitive in finance. Finance is a popular major, so there is a large pool of candidates. This can make it more difficult to stand out from the crowd.
Why did I get rejected for finance? ›
Find out why you've been refused credit
There are many reasons your application might have been turned down. These include: a history of missed payments or possible fraudulent activity on your file. the lender deciding you wouldn't be able to repay.
Which finance job pays the most? ›
Top 5 Highest Paying Jobs in Finance
- Chief financial officer (CFO)
- Investment banking.
- Hedge fund manager.
- Private equity associate.
- Actuary.
Salaries in the finance industry
According to the U.S. Bureau of Labor Statics (BLS), careers in finance pay a median salary of $76,850 — 66% higher than the median salary for all occupations in the nation ($46,310).
What are the cons of a finance career? ›
They can include high stress, big responsibility, long working hours, continuing education requirements, and, in some cases, a lack of job security—the finance industry is generally quite cyclical.
How to break into the finance industry with no experience? ›
How to Break Into Finance with No Experience
- Overview.
- Offer to Work (for Free) at a Search Fund.
- Start a Blog about Investing.
- Write Articles on Seeking Alpha and Value Investors Club.
- Start a Solo Small Business.
- Invest Your Own Money.
- Take Courses or get Certificates.
- Network Aggressively and Systematically.
The role, which demands acute attention to market trends, client needs, and financial planning, often extends beyond the typical nine-to-five schedule. This can lead to unpredictable work hours and the need for constant availability, which complicates the pursuit of work-life balance for these professionals.
