Financial Manager Salary

| Cynthia Widmayer Modified on March 23, 2022

Financial Manager Salary

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.

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.

Financial Manager Salaries by Education, Dec 2021
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.

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.

Financial Manager Salaries by Experience, December 2021
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.

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.

Top-Paying States for Financial Managers, 2020
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

Top-Paying Metropolitan Areas for Financial Managers, 2020
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.

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.

Top-Employing States for Financial Managers, 2020
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

Greatest Projected Percentage Increase
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

Most Projected Average Annual Openings
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

Top-Employing Metropolitan Areas for Financial Managers, 2020
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.

Top-Paying Industries for Financial Managers, 2020
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

Top-Employing Industries for Financial Managers, 2020
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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