Navigating Entry-Level Finance Jobs: A Comprehensive Guide for Aspiring Professionals
Breaking into the finance industry can be challenging, but the rewards for those who succeed are significant. From attractive salaries to opportunities for growth and development, finance careers offer a world of possibilities. This guide provides a thorough overview of entry-level finance jobs, helping aspiring professionals understand the landscape, education requirements, and the best positions to pursue based on interests and skills.
A Look At Entry-Level Careers In Finance
Entry-level finance positions are not only diverse but also offer competitive salaries. According to Glassdoor, the average annual compensation for entry-level finance positions in January 2021 was approximately $88,774. This can vary based on experience, with starting salaries in the finance, insurance, and real estate fields for 2020 graduates ranging from $56,750 to $62,500, as reported by the National Association of Colleges and Employers (NACE) Winter 2020 Salary Survey.
Education Requirements
While many believe a Harvard degree is necessary for success in finance, this is far from the truth. Many companies prioritize practical experience over academic prestige. However, an undergraduate degree in finance, accounting, economics, or related fields is typically required for any position at a reputable financial institution. This foundational education demonstrates your ability to understand and work with numbers, which is crucial in finance.
Interestingly, a NACE study revealed that in the financial sector, those with a focus on engineering and computer sciences received the highest compensation, while those focusing on sales and communication received the lowest. If your primary academic focus is in a different field, consider minoring in finance or taking relevant courses to enhance your portfolio.
Internships as a Stepping Stone
Internships are invaluable for those seeking entry-level finance jobs. They provide valuable experience and networking opportunities, often leading to full-time positions. Companies like Goldman Sachs and Morgan Stanley host events on university campuses, such as the Goldman Sachs Undergraduate Camp and the Morgan Stanley Career Discovery Day, which are excellent ways to gain exposure and access to potential employers.
Internships can be difficult to obtain, but their benefits make the effort worthwhile. They offer firsthand experience in the industry, contacts within the company, and sometimes even a pathway to full-time employment through training programs or consideration for future positions.
Continuing Financial Education
Continuing education is another way to enhance your credentials and knowledge base. Depending on the specific area of finance you are interested in, obtaining credentials such as the Chartered Financial Analyst (CFA) designation, Certified Public Accountant (CPA) designation, or Certified Financial Planner (CFP) designation can be advantageous. These credentials can help you stand out in the job market and demonstrate your commitment to the field.
In the United States, professionals in the investment and financial analysis sectors are required to pass a series of licensing exams. The Securities Industry Essentials Exam (SIE) has recently been made available for everyone over 18, making it easier to start your professional journey.
Looking for Finance Jobs: Best Entry-Level Positions
The finance industry offers a variety of entry-level positions, each with unique responsibilities and career prospects. Here’s a closer look at some of the top entry-level jobs:
Financial Analyst
Financial analysts work for investment firms, insurance companies, consulting firms, and corporations. They consolidate and analyze budgets, financial statements, and provide reports that help businesses make better financial decisions. To succeed in this role, a bachelor's degree in finance, accounting, or economics is required. Additionally, strong IT skills are beneficial, as these professionals often use advanced software and tools to manage data.
According to the Bureau of Labor Statistics (BLS), there were approximately 487,800 financial analyst jobs in the U.S. economy in 2010, with a projected growth rate of 5 percent through 2029. Financial analysts earn a median salary of $81,590 per year, as of January 2021.
Investment Banking Analyst
Investment banking is a prestigious and lucrative field, with professionals helping individuals, corporations, venture capital firms, and even governments with their capital-related needs. Some of the common responsibilities include preparing deal-related materials, conducting industry research, and financial analyses, as well as collecting information for due diligence purposes.
Entry-level positions in this field typically require a bachelor's degree in economics, finance, or management. An M.A. in one of these fields can be advantageous. In November 2020, the average starting salary for an investment banking analyst was $67,817, as reported by Payscale.
Junior Tax Associate/Accountant
Tax-related finance jobs are in high demand due to the need to comply with constantly changing tax regulations and standards. Junior tax associates and accountants work with clients to ensure compliance with local, state, and federal tax laws.
This role requires a strong understanding of tax laws, regulations, and accounting principles. It is common to have a bachelor’s degree in accounting, finance, or a related field, and to gain relevant work experience. Junior tax associates and accountants are well-compensated, earning a competitive salary and opportunities for career advancement.
When looking for entry-level finance jobs, it is essential to consider your personal interests and skills. Utilize online job boards such as LinkedIn, Indeed, and Monster. Additionally, visit websites specific to the finance industry for more targeted job listings, such as those on Broker Hunter and 1 EBITDA for investment banking positions.
In conclusion, the finance industry offers a range of entry-level positions that cater to various interests and skill sets. Understanding the requirements, leveraging internships, and continuously educating yourself can help you navigate this exciting and lucrative field effectively.