What does it mean to have a good career path? More to the point, what does it mean for you to have a good career path?
Some would consider the prospective salary amount and future job outlook when selecting a good career path. Others would consider the work hours, work/life balance and opportunities for advancement.
Finance jobs are no different than other jobs out there when it comes to making choices about what's best for you. No one career path is the perfect choice for everyone, so you need to gather as much information as you can to determine if a finance career path could match what you need.
Finance careers definitely have a lot to offer. Take a look at these considerations.
1. The solid career outlook and salary potential for finance jobs
Finance is one of those industries that will always be very prevalent because it’s a critical part of our economy.
The financial industry is very vast and there are many types of roles you can pursue. The U.S. Bureau of Labor Statistics (BLS) projects that business and finance jobs will be in demand from 2023 to 2033, with 963,500 openings on average each year. As with all professions there are certain positions that pay higher than others.
If you are curious about earnings, look into specific job titles in your area to get a picture. You could look into investment banking, jobs in private equity, and as a good baseline, the salary range for financial analysts in your area.
There are some financial positions that are commission-based as well.
The finance industry has a wide range of positions that would allow you to work behind the scenes, like a financial analyst or investment banker—or at the forefront of the industry, working with people directly like personal financial advisors or financial planning professionals.
Consider your personality type and the work environment that would work best for you overall. Here are a few financial positions to research...
- Financial Analyst
- Financial Manager
- Budget Analyst
There are also many finance professionals who become entrepreneurs. This enables them to utilize their understanding of financial markets to start their own financial services firm. These business owners cater to individuals and businesses that prefer a smaller more personable experience versus working with a large corporation.
2. Finance is a part of every career path
Most people do not realize how much finance is embedded into everything. Everyone from entry-level team members to upper-level leadership positions in business and financial occupations has a financial aspect of their position.
For instance, upper-level leadership is responsible for the long-term vision of a company which entails a heavy financial component. Their role entails making sure the company remains financially stable years into the future. Therefore, the decisions they make today heavily impact the company’s future performance. These financial goals are then passed along to the mid-level management team who in turn implement the goals as a part of the team members’ daily, weekly, monthly, quarterly and yearly goals.
Financial jobs are only part of the picture--management, leadership and business careers are also deeply connected to a finance career path.
After I graduated from college, I secured a position as a retail sales management trainee.
In this leadership role, I was responsible for making sure my department met sales goals. When I arrived to the store in the mornings, my first priority was to generate sales reports that showed me if we achieved our sales goals from the previous day—and if we were on track to meet our weekly goals.
Next, I would sit down and analyze these financial reports to determine which areas of the department were meeting their goals and which ones we needed to improve. Then, I would meet with the sales team to discuss the financial reports and get feedback from them regarding what could be implemented to improve the overall sales numbers.
If you become a manager, your front-end team members will be your most valuable resource. They work directly with customers and know what they want and need. Based on their feedback, I worked with our buyers and distribution team through corporate headquarters to order more products.
Another example of how finance runs underneath everything could be the simple placement of the merchandise on the sales floor. When analyzing the sales reports, I could see which line items were not selling well. I would then consider relocating them closer to the front of the department to help capture the attention of customers when they first walked in.
Sometimes this one subtle change can make a huge difference, and it would increase the sales of the product. Honestly, when I first started in this role, I didn’t realize how much of my management position entailed looking at financial reports and analyzing numbers to help the company achieve their goals.
3. Working in finance can allow you to help people
If you enjoy helping others reach their goals, then a financial advisor career path might be a good choice for you. In this role, your clients can range from people who know nothing about finance and are trying to set a budget—to clients working in the financial industry and making choices about venture capital.
Some people who have financial knowledge still entrust a financial advisor to manage their accounts. People may need help with budgeting, retirement planning, investing, debt management, estate planning, etc. As a fiduciary, you would be entrusted with helping them to achieve these important goals for themselves and their families.
Earning and maintaining your certifications as a financial professional is key to your success. People are naturally apprehensive about trusting someone with their money so it’s important for financial professionals to stay within the guidelines of the SEC (Securities Exchange Commission).
Adults and kids can benefit from learning about finance and how it can help them achieve their short-term and long-term goals. Some people can be very hesitant to talk about money or ask for help. They also may not have the extra funds to pay anyone to help them as well. There are non-profit organizations that are making financial education more accessible and affordable to help people become debt free, obtain home ownership, and reach their overall financial goals.
4. Finance is full of ethical considerations to navigate
Working in finance can involve ethical quandaries. This is definitely something to consider if you are interested in the finance industry.
For example, Tasha is an investment advisor for a large investment firm. She has a client that only believes in investing in environmentally-friendly companies. Tasha is in the process of rebalancing their investment portfolio, and she determines that the client can increase their rate of return if they add a new company to their portfolio that has been making huge advancements in the technology sector.
Not only will it help to increase the returns for her client but also her commissions will increase drastically as well.
Portfolio managers need to manage client portfolios in accordance with their wishes. After conducting more research, Tasha discovers that the new company is not environmentally friendly. Since she has already completed the Investment Policy Statement with the client, she knows that this type of company would not meet the client’s requirements and therefore would not include it as part of rebalancing their portfolio.
5. When you understand finance, teaching can become a big part of your role
Fifteen years ago, I never thought I would be teaching finance courses as a college professor.
My undergraduate degree is in business administration/marketing, and I also have my MBA with a concentration in finance. But even after I completed graduate school, I still did not think about teaching finance courses.
I have always loved helping people, and being able to teach students and mentor them has been very fulfilling.
You can also work as a financial educator in your community. I know several experienced financial professionals who also educate local groups about financial topics. They provide presentations that cover a range of financial topics that include budgeting, needs vs. wants, goal planning, debt management, investing and retirement.
6. You can earn a finance degree online
Another reason to consider a finance career path is its learning accessibility. Finance doesn't require specific tools or in-person learning (this hybrid and remote adaptability is another selling point for many finance professionals).
I enjoy teaching finance courses in an online format. This type of work environment allows me to be creative and adapt to various learning styles when teaching different financial topics. Students always provide feedback that they were apprehensive about finance at the start of the course, but in the end, they learned a lot and enjoyed the course overall.
7. Learning finance is actually really interesting
One of the reasons I like teaching finance is that our students at Rasmussen University can put themselves in the shoes of different financial professionals throughout their degree program.
For instance, the finance course assignments are actual real-life case studies where students have to play the role of a financial advisor or investment portfolio manager. While completing these projects, they are tasked with analyzing financial reports and compiling a detailed recommendation for a business.
Other courses provide them with an investment portfolio for a client, and they are tasked with analyzing the portfolio and preparing a presentation to show the client the estimated returns that will assist them with meeting their financial goals. These types of projects prompt students to utilize their analytical, problem-solving and communication skills, just as they would in a true financial professional role.
8. Finance is different from Accounting, but there’s useful crossover if you want to change paths
People use the terms finance and accounting interchangeably, but they have different roles within an organization. What helped me to differentiate between the two is understanding that finance departments work with the long-term goals of the company, and accounting deals with the day-to-day.
Financial professionals are more involved in the financial planning for the company. They create and analyze financial statements to determine how the company can meet their financial goals short-term and long-term.
Financial professionals are also involved in the company’s investments as well. They are responsible for keeping the company sustainable into the future. Accountants handle the detailed day-to-day financial transactions for the company. This role requires paying a lot of attention to detail since mistakes can impact the company’s financial statements and effect their financial overview.
To compare, check out 10 Accounting Pros and Cons to Consider—Before You Make it Your Major.
So, is finance a good career path for you?
If you have determined that a career in finance is a good fit for you, then you can begin by researching the various roles in the financial industry and decide which path you would like to pursue. Finance careers vary widely in everything from compensation to the type of work you'd do. Making choices about your future will be a little easier if you have an idea of the finance jobs you'd be most interested in.
Then, you can find out the requirements for the roles you like most and take steps to complete any credentials, education and training that is necessary. Overall, pursue the path that aligns best with your personal and professional goals.
As a good starting place, check out What Can You Do with a Finance Degree? 7 Careers to Consider.
Rasmussen University Accounting programs are not designed to prepare graduates for any state-issued professional license or certification. This program does not meet all educational prerequisites for licensure as a Certified Public Accountant (CPA) in any state. Each state determines its own requirements for licensure as a Certified Public Accountant (CPA). In addition to other requirements, most states require a bachelor’s degree and no fewer than 225 quarter credits (150 semester credits) of university coursework, specific in-field experience, and passage of the CPA licensing exam. Additional examination eligibility and licensure requirements exist. Please consult with your state’s board of accountancy or equivalent oversight agency for further details, as requirements may change at any time. This program has not been approved by any state board of accountancy or other professional licensing agency.
