In today’s evolving professional landscape, the requirements for becoming a financial analyst have become more flexible and dynamic. While a degree still holds value, alternative paths and a focus on practical skills have gained recognition. This median salary for financial analysts exceeds the national average income of U.S. citizens, which was approximately $61,900 per year as of 2022, according to the U.S. Financial analysts review financial reports, identify investment opportunities and forecast potential financial trends for a company.
It’s important to note that interpersonal skills are also crucial for this role. The majority of financial analyst careers will require what does financial analyst do a bachelor’s degree with on-the-job training to learn the complexities of the job and industry. Depending on the specific path an individual chooses, further requirements may be needed, such as securities licenses or other degrees. In general, financial analysts are well paid which can lead to them becoming rich. The average salary for a financial analyst in 2023 (the latest data available) was $99,890.
In general, they ensure that their clients and employers spend money in the most profitable areas. In the corporate world, senior analysts can become treasury managers supervising working groups within their departments. A standout performer may rise through the ranks to become a chief financial officer (CFO) or chief investment officer (CIO) responsible for all of the company’s financial activities. While junior analysts are not barred from advancement, continuing progression to positions with greater responsibility usually necessitates returning to school. A graduate with a master’s degree can expect to begin work as a senior financial analyst or rise to the position very quickly. To succeed in the rapidly evolving financial industry, financial analysts must continually learn and adapt to changes in technology, regulations, and market trends.
There is both an art and a science to predict how a company will perform, and many assumptions and even leaps of faith have to be made. Common forecasting methods include regression analysis, year-over-year growth rates, as well as bottom-up and top-down approaches. Brenna Swanston is an education-focused editor and writer with a particular interest in education equity and alternative educational paths. As a newswriter in her early career, Brenna’s education reporting earned national awards and state-level accolades in California and North Carolina.
Financial analysts should, of course, have analytical minds and be detail-oriented in their research. They need both strong math skills—specifically in statistics and probability—and computer literacy, as analysts use software to look at trends and make forecasts. Financial analysts typically work in an office environment, but some work remotely. The job can sometimes be high-stress, and analysts may work long hours to keep up with the latest information and fast-changing data. Consider the IBM Data Analyst Professional Certificate to sharpen your data analysis skills or Yale University’s Financial Markets course to improve your understanding of finance.
To learn more about the real day-to-day life of an analyst, check out CFI’s Online Financial Analyst Courses, as they provide complete training on all of the most important skills that are required for the job. She has eight years of experience in journalism, editing and marketing, allowing her to dive into interesting topics and industries. She primarily researches and writes about higher education, insurance and healthcare, helping readers make empowered, informed decisions. You can become a financial analyst within four years, or the time it takes you to earn a bachelor’s degree. Depending on the type of work you plan to do, it may take additional time to earn licensure through FINRA as well.
Let’s take a closer look at a day in the life of a junior and senior financial analyst. A financial analyst is trained to examine financial data and information to identify patterns and trends. They use this information to help businesses and individuals make investment decisions, manage risk, and evaluate financial performance. Financial analysts often work for banks, investment firms, or other financial institutions, and they may specialize in areas such as investment banking, asset management, or risk management.
For individuals with non-business backgrounds, designations such as the CFA charter help bridge the knowledge gap and open doors to finance careers. Sell-side analysts may also work with investment research and manage funds, but they specialize in selling investments and other financial services. They typically work for banks and investment firms, providing guidance and reports for their employers and clientele. Financial analysts provide individuals and organizations with data-driven insight to help guide their buying and selling strategies and decisions.
Take a look at job titles for financial analyst job descriptions used by your competitors and use something similar. A financial analyst can don multiple hats within an organization’s structure. To ensure that you get the right fit for your unique situation, write a financial analyst job description that is crystal clear about your needs. Forbes Advisor’s education editors are committed to producing unbiased rankings and informative articles covering online colleges, tech bootcamps and career paths. Our ranking methodologies use data from the National Center for Education Statistics, education providers, and reputable educational and professional organizations. An advisory board of educators and other subject matter experts reviews and verifies our content to bring you trustworthy, up-to-date information.