Money Management Salary

Money management is a growing field. It appeals to recent graduates who desire to work primarily in the private sector for financial institutions. They may also work as government officers in the budget department. In the private sector, money managers typically work in executive departments with upper-level staff. They support the activities of the financial officer and the comptroller. At the professional level, they work more than forty hours per week and they are required to travel.

Money managers receive large salaries. They complete an education program and are mathematically astute. As professionals, they minimize risk. Most managers have a master’s degree and they pursue certification as one option toward professional development. With continuing education, they earn as high as $135,000 per year.

Salary Overview

The specific salary for money managers is determined by a number of factors. Money managers must have at least a bachelor’s degree in finance or financial management with supplemental coursework in economics studies. Managers who are certified and/or who have a master’s degree earn more than those who just have a bachelor’s degree.

Other factors come to play in determining the salary of a money manager. Entry-level salaries are determined by experience, the industry, and the size of the employer. Most money managers earn more working for management services companies than for the federal government as civil servants. Money management is a highly competitive field.

According to the Bureau of Labor Statistics, the average salary for money managers working in the private sector is $99,330. The highest ten percent in the private industry earn $135,070. Managers who worked as securities managers earn less at $134,940. Managers in the insurance industry earn $110,750. Managers who work for the federal government earn approximately $77,200.*

*According to the BLS, http://www.bls.gov/oco/

Job Description and Outlook

Certification and professional organizations require money managers to have a working knowledge of money management concepts and federal reporting principles. In general, money managers work in a variety of roles. They may be classified as financial managers, comptrollers, treasurers, and credit managers. They may also work as risk managers and work in the international banking industry. As a financial manager, they prepare reports, sustain long-term financial growth, and direct cash flow. As a comptroller, money managers prepare the income statement. They prepare cash flow and expense reports. They supervise the accounting department. They serve as liaisons to regulatory agencies. They ensure compliance when it comes to money management and banking activities. As treasurers, money managers evaluate risk, raise capital, and invest corporate funds. As credit managers, they create collections policy and procedures manuals, they manage cash (cash manager), they monitor funding disbursements, and they create loan policies. As risk managers, they purchase and monitor insurance.

The career outlook for recent graduates is positive. The demand for money managers is expected to increase as opportunities for employment will vary based upon geographic location, professional experience, education, and industry. Money managers who typically work in executive departments or who work in international banking earn more than their counterparts.*

*According to the BLS, http://www.bls.gov/oco/

Training and Education Requirements

Money managers must have at least a bachelor’s degree in finance or other business mathematics major. They are encouraged by counselors to supplement their work through enrollment in economics studies courses. Most financial industries require a master’s degree.
In general, money managers must be strong in math, particularly business math. They must be analytical and be able to interpret financial principles according to common methodologies.

Although most money managers are not required to be certified in the field, those who work in accounting must be licensed as a Certified Public Accountant (CPA). They must also be able to communicate financial principles and terms and manage entry-level money managers.

Certifications

Money managers are not required to be certified in their field. However, they may pursue certification as part of a professional development program.

Money managers may pursue a certification as a Chartered Financial Analyst. The certification is offered through the CFA Institute. To earn the certification, money managers must hold a bachelor’s degree in the field and must have work experience. The exam is three-part.

In addition, money managers may pursue a certification as a Certified Treasury Professional.
The certification program is offered by The Association for Financial Professional (AFP). To receive the certification, money managers must have at least two full years of experience in the field and they must pursue a continuing education program after the awarding of the certification.

Money managers may also pursue a certification as a Certified Management Accountant (CMA). The certification is awarded by the Institute of Management Accountants (IMA).
Money managers must hold a bachelor’s degree, have two years of field experience, and work primarily in accounting in order to take the exam. They must continue their education beyond the awarding of the certification.

Professional Associations

Money managers may pursue membership with the Institute of Management Accountants (IMA). IMA is a membership organization that provides advocacy on behalf of its members. To date, it represents approximately 59,000 members who are professionals in the field. Membership is primarily for professionals who serve in the academic arena and within their local communities.

Members enjoy such benefits as networking seminars and conferences, professional development educational opportunities, discounted journal subscriptions, and career and job resources. Members may join as a professional member, as a member who has under five years of experience, as a student, and as an academic professional. Rates for membership with the organization range from $195 for professional members, $130 for young professionals, $39 for students, and $98 for academic professionals.

IMA also provides opportunities for its members to seek licensing in their field. Money managers may be licensed as a Certified Management Accountant. All members are eligible to take the Certified Management Accountant exam and they have access to the CMA handbook.

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