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. Schools offering Financial Management degrees can also be found in these popular choices.
Financial Manager Defined
As a financial manager, you will arrange, oversee and organize a myriad of financial activities of 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 manager, such as controllers, treasurers, cash managers, credit managers and insurance managers. Each one of these specific careers presents you with its own 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.
According to the U.S. Bureau of Labor Statistics (BLS), there were 478,940 people employed as financial managers in May 2010 earning average yearly salaries of $116,970 (www.bls.gov). The bottom ten percent of financial managers earned approximately $56,120 per year, while the top 25% earned approximately $142,210 per year.
In May 2010, credit intermediation companies employed the greatest number of financial managers among other industries and offered a mean annual wage of $96,070. Many other financial managers worked in the management of companies and enterprises and earned a mean annual wage of $134,100. Another major employer of financial managers was the insurance carriers industry, which offered on average $127,540 per year. The highest-paid financial managers worked in other financial investment activities, earning on average $168,640 per year.
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.
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