How to Become a Financial Manager: A Career Guide
Introduction: The Growing Demand for Financial Managers
In an era of economic complexity and financial innovation, Financial Managers play a critical role in shaping business strategies, managing corporate finances, and ensuring economic stability. As a result, the demand for financial managers has been rising, offering high salaries and strong job security.
In 2023, the U.S. had over 787,340 financial manager jobs, reflecting a 6.3% increase from 2022 and a 15.6% increase from 2021. The median annual salary reached $156,100, marking an 11.7% wage increase from 2022 and an 18.5% increase from 2021.
With expanding job opportunities across industries and increasing compensation levels, financial management is an attractive career choice for professionals with strong analytical, leadership, and strategic planning skills. This guide explores the educational requirements, job responsibilities, career advancement opportunities, and job outlook for aspiring financial managers.
Educational Requirements and Certifications
1. Earning a Degree in Finance or Related Fields
A career as a Financial Manager typically requires a Bachelor’s degree in:
Finance
Accounting
Economics
Business Administration
Many professionals also pursue a Master of Business Administration (MBA) with a Finance concentration to enhance career prospects and earning potential.
2. Essential Certifications to Boost Career Growth
Certifications are not mandatory but significantly increase job opportunities and salaries. Some of the most respected certifications include:
Certified Financial Manager (CFM) – Strategic financial management
Certified Public Accountant (CPA) – Advanced accounting and auditing knowledge
Chartered Financial Analyst (CFA) – Investment management and financial analysis
Certified Treasury Professional (CTP) – Cash and risk management expertise
Key Responsibilities of a Financial Manager
Financial managers are responsible for overseeing financial planning, risk management, and investment decisions. Their key duties include:
Creating financial reports and forecasts to help businesses make strategic decisions
Managing investment portfolios to maximize returns
Supervising accounting teams to ensure regulatory compliance
Developing financial policies and risk management strategies
Optimizing budgets and controlling costs
Staying updated on financial regulations and economic trends
Where Do Financial Managers Work?
Top Industries for Financial Managers
The top industries employing financial managers in 2023 include:
Finance and Insurance – 247,530 jobs, $158,970 median salary (+3.7% above the national average).
Professional, Scientific, and Technical Services – 110,290 jobs, $169,860 median salary (+10.3% above the national average).
Management of Companies and Enterprises – 91,150 jobs, $167,820 median salary (+9% above the national average).
Government (Federal, State, Local, excluding schools/hospitals) – 48,130 jobs, $129,880 median salary (-25.1% below the national average).
Manufacturing – 47,930 jobs, $158,750 median salary (-1.6% below the national average).
Highest-Paying Industries for Financial Managers
Some industries offer significantly higher salaries due to the complexity and importance of financial oversight:
Information Industry: $184,440 median salary (+20.8% above the national average).
Professional, Scientific, and Technical Services: $169,860 median salary (+10.3% above the national average).
Mining, Quarrying, and Oil and Gas Extraction: $167,900 median salary (+13.9% above the national average).
Best Locations for Financial Manager Jobs and Salaries
Top States for Financial Manager Employment
The highest number of financial manager jobs were found in:
California – 97,400 jobs, $169,780 median salary (+12.5% above the national average).
Texas – 63,800 jobs, $155,380 median salary (-2.2% below the national average).
New York – 62,800 jobs, $215,430 median salary (+37.9% above the national average).
Illinois – 48,810 jobs, $149,900 median salary (-0.9% below the national average).
Florida – 42,740 jobs, $135,780 median salary (-7.2% below the national average).
Top Metropolitan Areas for Financial Manager Jobs
New York-Newark-Jersey City, NY-NJ-PA: 76,600 jobs, $215,630 median salary (+38.5% above the national average).
Chicago-Naperville-Elgin, IL-IN-WI: 39,420 jobs, $159,070 median salary (+3.5% above the national average).
Los Angeles-Long Beach-Anaheim, CA: 34,810 jobs, $168,340 median salary (+10.7% above the national average).
Boston-Cambridge-Nashua, MA-NH: 27,030 jobs, $171,210 median salary (+12.7% above the national average).
Dallas-Fort Worth-Arlington, TX: 23,520 jobs, $160,930 median salary (0% above the national average).
Regions with the Highest Financial Manager Job Concentration
Some areas have a higher density of financial managers compared to the national average:
Bridgeport-Stamford-Norwalk, CT: 3.3x national concentration, $174,090 salary.
Hartford-West Hartford-East Hartford, CT: 2.4x national concentration, $160,550 salary.
Des Moines-West Des Moines, IA: 2.1x national concentration, $136,600 salary.
Career Growth and Advancement Opportunities
1. Moving into Senior and Executive Roles
Chief Financial Officer (CFO) – Leading a company's financial strategy
Vice President of Finance – Managing financial planning and analysis
Director of Finance – Overseeing corporate financial health
2. Specializing in High-Demand Fields
Investment Banking
Financial Technology (FinTech)
Corporate Finance
Risk Management
3. Transitioning to Consulting or Entrepreneurship
Many financial managers become financial consultants or start their own firms after gaining industry experience.
Job Outlook and Salary Trends
The demand for financial managers remains strong and growing, driven by:
Increasing Financial Regulation – Companies need experts to navigate tax laws and compliance.
FinTech Innovation – Growth in digital banking, cryptocurrency, and financial software.
Business Expansion – More businesses require financial managers to oversee cash flow, investments, and risk.
Key Trends:
6.3% job growth from 2022 to 2023.
15.6% increase in jobs since 2021.
18.5% wage growth since 2021.
Conclusion: Why Pursue a Career in Financial Management?
Becoming a Financial Manager is an excellent career choice with high salaries, strong job security, and leadership opportunities. With the increasing complexity of global finance, the demand for skilled financial managers is set to grow.
Next Steps for Aspiring Financial Managers:
Earn a degree in finance, accounting, or business.
Gain practical experience through internships or entry-level finance roles.
Pursue certifications like CFA or CPA for career advancement.
Specialize in high-demand financial sectors.
The future of financial management is bright—are you ready to start your journey?
For more detailed insights, visit our Financial Managers Dashboard.
