The finance sector offers a promising career path with substantial monetary rewards, job stability, and opportunities for growth. However, newcomers might face stiff competition, demanding work hours, and a high-pressure environment.
Finance professionals have a range of options, from investment banking to international finance, dealing with financial relations among different nations. The U.S. Bureau of Labor Statistics projects a 12% job growth for financial analysts by 2024, with Europe and Asia also experiencing a surge in finance-related jobs.
Starting a Career in Finance: First Steps
Interested in a finance career but unsure where to start? Essential qualifications include degrees in finance, business management, economics, accounting, or mathematics. If your degree is in a different field, additional work may be needed to acquire necessary finance knowledge. An MBA, while not essential, is highly valued in the finance sector, especially for international positions.
Financial certifications can enhance your attractiveness to financial firms. If you’re still studying and aiming for a finance career, leverage university resources by networking, securing internships, and enhancing skills like communication and problem-solving. Graduates should seek internships for hands-on experience, crucial for certification eligibility. Those switching careers from other fields might start with entry-level finance positions or basic certifications.
Key Finance Certifications and Licenses A bachelor’s degree is the minimum requirement in finance, but further certifications can significantly elevate your career prospects:
Master of Business Administration (MBA)
An MBA equips you with broad skills and strategic thinking abilities. Admission typically requires standardized tests like the GMAT or GRE.
Certified Public Accountant (CPA)
Ideal for those interested in public and managerial accounting. The CPA exam covers auditing, business concepts, financial reporting, and regulation.
Certified Financial Planner (CFP)
Requires a bachelor’s degree and significant financial planning experience. Adherence to ethical standards is a must.
Certified Management Accountant (CMA)
Suited for management accounting, requiring a bachelor’s degree and two years of professional experience.
Certified Market Technician (CMT)
For those advising on stocks and investments, demonstrating expertise in risk and portfolio management.
Certified Investment Management Analyst (CIMA)
The top certification for financial advisors and consultants, requiring extensive experience and completion of executive education programs.
Chartered Financial Analyst (CFA)
Entails a bachelor’s degree and four years of investment-related experience. Recognized globally, it offers a solid pathway for career growth.
Exploring various certifications can further advance your career in finance.
Choosing the Right Finance Role
Determining the right finance career path involves introspection and analysis of your skills and preferences. Whether you thrive in high-pressure environments, enjoy helping others with their financial goals, or have a knack for number crunching, the finance field has diverse roles to suit different interests.
Career Options for Finance Majors
For finance majors, options range from financial planning to investment banking, asset management, corporate finance, and more. Each area requires specific skills and offers unique opportunities.
Financial Advisor vs. Financial Planner
Financial advisors and planners both manage client funds but have distinct focuses. Financial planners create comprehensive financial strategies, while advisors concentrate on investment guidance. Planners address a wider range of financial needs, including tax planning and retirement strategies, whereas advisors focus on matching investments with client goals and regularly monitor and adjust these investments.
Is Finance Still a Viable Career Path?
A finance career remains lucrative and growing, offering a variety of job opportunities. Despite its challenges, including market volatility and the need for continual learning, finance offers diverse roles for different skill sets. Sharpening interpersonal and decision-making skills can pave the way for a successful career in finance or related fields.
