The pros and cons of a career in financial services - Tiger Recruitment (2024)

FAQs

What are the pros and cons of financial services? ›

They can include high stress, big responsibility, long working hours, continuing education requirements, and, in some cases, a lack of job security—the finance industry is generally quite cyclical.

BLS data indicates that personal financial advisors earned a median annual income of nearly $95,390 as of 2022, more than double the median annual salary for all occupations nationwide. Financial analysts—among the most common careers in finance—earned a median annual salary of $96,220.

A career in finance can be very lucrative. The average salary for a finance major is $101,038. Pursuing a career as a financial advisor or another form of financial sales can go well beyond this number, whereas a career in corporate America or the government typically stays close to it.

Pros of hiring a financial advisor include gaining access to expertise, leveraging time, and sharing responsibility. However, there are also potential downsides to consider, such as costs and fees, quality of service, and the risk of abandonment.

Providers of financial services, then, help channel cash from savers to borrowers and redistribute risk. They can add value for the investor by aggregating savers' money, monitoring investments, and pooling risk to keep it manageable for individual members. In many cases the intermediation includes both risk and money.

Financial services have long been considered an industry where a professional can thrive and work up the corporate ladder to ever-increasing compensation structures.

A career in finance is yours to build. With a broad range of opportunities available, whether that's through advisory support, business development, underwriting, customer service, or even marketing, the sector itself caters to a diverse set of skills and interests.

People who have a bachelor's degree in finance take in $124,000 a year on average, according to data collected by Comparably. 1 However, and it becomes apparent just how many finance-related careers pay well above average. Here's a look at how you can expect to fare in some of the field's more common occupations.

Do finance degrees make a lot of money? ›

The average starting salary for finance majors is $55,000, and the average mid-career salary is $110,000.

You don't need an MBA to work in finance, but the field is highly competitive, especially at the entry-level. Internships offer experience, exposure, and a tryout for a full-time gig.

Cons of Becoming a Financial Manager

Managing the financial health of an entire organization comes with a great deal of responsibility. That responsibility can, in turn, cause you a lot of stress. This can be a very fast-paced job, too, which can contribute to work-related stress.

In conclusion, financial literacy has both its advantages and disadvantages. On the one hand, being financially literate can help individuals make more informed decisions with their money and avoid debt. On the other hand, financial literacy can also lead to people becoming more materialistic and obsessed with money.