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UpdatedOctober 18, 2023·3Min Read
Want to become a financial manager? Read this guide for financial manager salary expectations, plus projected demand and top employment locations.
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Financial managers oversee the financial health of a business. They analyze data, create strategies for maximizing profit, and act as advisors to senior managers within an organization.
A financial manager's annual median salary exceeds 100,000, according to the U.S. Bureau of Labor Statistics (BLS). The BLS also projects 17% job growth between 2020 and 2030.
This guide takes an in-depth look at financial managers' pay and job prospects. It also covers the most important factors affecting income and employment, such as location, industry, education, and experience for this career.
How Much Does a Financial Manager Make?
The highest 10% of financial managers earned over $208,000 in 2020, while the lowest 10% made under $70,830.
According to the BLS, the annual median salary for financial managers was $134,180 in 2020, which equates to $64.51 per hour. The highest 10% of financial managers earned over $208,000 in 2020, while the lowest 10% made under $70,830.
This is a fast-growing career with ample opportunities for a high salary, making this role appealing to students in accounting and related fields.Although there is high potential for above-average pay, a financial manager's salary depends on factors like academic qualifications and experience.
Financial Managers
Median Annual Salary, 2020
$134,180
Source: U.S. Bureau of Labor Statistics
Average Salary for a Financial Manager by Education
Financial managers must at least hold a bachelor's degree. Aside from finance, other possible undergraduate majors include economics, accounting, management, and business.
Note: The salary data in the following table does not represent only financial managers, but professionals across all industries who hold a finance degree.
| Education Level | Average Annual Salary |
|---|---|
| Bachelor of Finance (BFin), Financial Management | $64,000 |
| Bachelor of Science, Financial Management | $66,000 |
| MBA, Financial Management | $100,000 |
Source: Payscale
Prospective financial managers can pursue master's degrees and graduate certifications for a higher salary and job growth. However, any degree or diploma calls for a significant investment of time and money. Students pursuing finance management should consider carefully before committing to higher education.
Read about degree programs in accounting
Learn how to earn a CFP certification
Learn about bachelor's degree programs in finance
Learn about online bachelor's degree programs in finance
Finance Management Salaries by Experience
As with most careers, financial managers' salaries increase with experience. Professionals with fewer than five years of experience earn less than those with two or three decades in the field. With more time in the role, financial managers gain skills that could lead to career advancement and salary raises.
| Years of Experience | Average Annual Salary |
|---|---|
| Entry-Level (<1 year) | $59,197 |
| Early Career (1-4 years) | $65,871 |
| Mid Career (5-9 years) | $80,294 |
| Late Career (10-19 years) | $78,880 |
| Experienced (20+ years) | $78,965 |
Source: Payscale
Financial managers with five or more years of experience can expect the highest salary jumps. Maximum growth and salary advancement often occurs within the first 10-15 years of a financial management career.
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Salary by Location
While education and experience are significant factors in determining salary, job location also plays an important role. For instance, financial managers in New York earn the highest salary, around $215,640, but there are only 45,390 financial managers employed in the state.
In comparison, financial managers earn a salary of $162,650 in California, but the state has a far higher employment rate at 92,670. Factors that contribute to differences in salaries include cost of living, population density, and the local job market.
| State | Number of Financial Managers Employed | Average Annual Salary |
|---|---|---|
| New York | 45,390 | $215,640 |
| New Jersey | 22,900 | $184,130 |
| District of Columbia | 7,060 | $177,920 |
| Delaware | 2,310 | $176,630 |
| Colorado | 7,450 | $172,400 |
Source: BLS
| Metropolitan Area | Number of Financial Managers Employed | Average Annual Salary |
|---|---|---|
| New York-Newark-Jersey City, NY-NJ-PA | 56,680 | $214,670 |
| Bridgeport-Stamford-Norwalk, CT | 6,560 | $210,180 |
| San Jose-Sunnyvale-Santa Clara, CA | 8,790 | $192,310 |
| San Francisco-Oakland-Hayward, CA | 19,310 | $191,380 |
| San Francisco-Oakland-Hayward, CA | 19,310 | $191,380 |
Source: BLS
Where Should I Work as a Financial Manager?
The best job prospects for financial managers are places with thriving economies. The BLS predicts a 17% growth in financial manager jobs between 2020 and 2030, which is higher than average. Those graduating with a finance degree (or related subject) should find high demand for financial managers over the next decade, particularly in metropolitan areas.
Financial Managers
Change in Projected Employment from 2020-2030
+17%
Source: Bureau of Labor Statistics
Best Areas
Financial managers can find employment opportunities all over the country, but chances are greater in urban areas than rural regions. Because finance management involves business and monetary transactions, booming financial sectors in big cities make up a large portion of the job market.
According to BLS data, New York, New Jersey, and Washington D.C. have the highest-paying financial manager jobs. Connecticut, Massachusetts, and Illinois are some states with the highest concentration of jobs. The salary of a financial manager varies based on location, industry, and the specific field of work.
| State | Number of Financial Managers Employed | Average Annual Salary |
|---|---|---|
| California | 92,670 | $162,650 |
| Texas | 46,340 | $148,860 |
| New York | 45,390 | $215,640 |
| Illinois | 41,460 | $148,620 |
| Massachusetts | 33,320 | $158,990 |
Source: BLS
States With the Greatest Projected Increase in Employment for Financial Managers, 2018-28
| State | Percent Projected Change, 2018-28 | Average Annual Openings |
|---|---|---|
| Utah | 44.4% | 1,180 |
| Nevada | 30.3% | 730 |
| Colorado | 30.1% | 950 |
| Texas | 30% | 4,920 |
| Arizona | 28.8% | 580 |
Source: BLS
| State | Percent Projected Change, 2018-28 | Average Annual Openings |
|---|---|---|
| California | 18.6% | 10,220 |
| Nevada | 30.3% | 730 |
| Texas | 30% | 4,920 |
| New York | 21.7% | 4,810 |
| Massachusetts | 13.1% | 3,420 |
| Florida | 22.7% | 3,370 |
Source: Projections Central
| Metropolitan Area | Number of Financial Managers Employed | Average Annual Salary |
|---|---|---|
| New York-Newark-Jersey City, NY-NJ-PA | 56,680 | $214,670 |
| Los Angeles-Long Beach-Anaheim | 35,700 | $158,070 |
| Chicago-Naperville-Elgin, IL-IN-WI | 34,420 | $156,490 |
| Boston-Cambridge-Nashua, MA-NH | 29,200 | $164,500 |
| Washington-Arlington-Alexandria, DC-VA-MD-WV | 21,120 | $177,140 |
Source: BLS
Best Industries
The BLS notes the banking industry has the highest concentration of financial managers, employing over 98,570 professionals.
Financial managers will find employment in any industry where finance, data analysis, and transactions play a key role. The BLS notes the banking industry has the highest concentration of financial managers, employing over 98,570 professionals. This includes fields such as lending, brokerage, and mortgage.
Business management comes a close second, employing 74,260 financial managers. Financial investment and securities is the highest paying industry for financial managers, with an average salary of $206,050.
The day-to-day activities and the salary of a financial manager vary. Some industries involve managing cash flow, directing investments, and preparing credit reports. Other sectors may have tasks like offering financial advice, profit planning, and staying on top of current and future trends in the industry.
| Industry | Number of Financial Managers Employed | Average Annual Salary |
|---|---|---|
| Securities, Commodity Contracts, and Other Financial Investments and Related Activities | 41,920 | $206,050 |
| Other Information Services | 3,130 | $204,410 |
| Monetary Authorities-Central Bank | 630 | $200,780 |
| Cable and Other Subscription Programming | 310 | $196,520 |
| Computer and Peripheral Equipment Manufacturing | 990 | $195,340 |
Source: BLS
| Industry | Number of Financial Managers Employed | Average Annual Salary |
|---|---|---|
| Credit Intermediation and Related Activities | 98,570 | $124,040 |
| Management of Companies and Enterprises | 74,260 | $165,480 |
| Accounting, Tax Preparation, Bookkeeping, and Payroll Services | 42,750 | $175,200 |
| Securities, Commodity Contracts, and Other Financial Investments and Related Activities | 41,920 | $206,050 |
| Insurance Carriers | 26,990 | $170,850 |
Source: BLS
Questions About the Income of a Financial Manager
How much money does a financial manager make?
According to BLS data from May 2020, a financial manager can make as much as $208,000 or as low as $70,830 per year. In some states, a financial manager can make close to $250,000 a year on average.
What is the average salary of a financial manager?
The BLS notes financial managers earned a median average salary of $134,180 in 2020. This figure can change depending on career stage, location, industry, and education level.
What are the top-paid jobs in financial management?
Graduates in financial management can find several potentially rewarding roles in various industries. Some of the best-paying jobs in finance management include financial managers, economists, and financial analysts.
Where is the best state to work as a financial manager?
New York, New Jersey, and D.C. currently offer the top-paying financial manager jobs in the U.S. The average annual salary for a financial manager in New York was $215,640 as of May 2020.
What is the best industry to work in as a financial manager?
The finance and insurance industry was the top employer for financial managers in 2020, followed by professional, scientific, and technical services, and business management. These industries have potentially rewarding jobs for financial managers and a bright outlook and career advancement opportunities.
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