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What Is a Financial Analyst?

Degrees, Skills, and Career Outlook

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Financial analysts help individuals and organizations make informed investment decisions, manage financial risks, and understand market trends. Whether working on Wall Street or at a local startup, financial analysts use data to guide critical business choices. This in-demand career offers excellent salary potential, diverse industry applications, and multiple education paths—from bachelor’s degrees to advanced certifications like the CFA.

In this article, you’ll learn what a financial analyst does, what degrees and skills are needed, and how to get started in this high-growth profession.

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What Does a Financial Analyst Do?

Financial analysts interpret financial data to help businesses make investment, budgeting, and strategic decisions. They study historical performance, evaluate market trends, create financial models, and prepare reports that influence major business moves.

Day-to-Day Responsibilities

  • Analyze financial statements and performance data
  • Develop forecasts and budgets
  • Monitor economic trends and company-specific developments
  • Create models for evaluating investments or risks
  • Recommend actions based on financial insights
  • Report to executives, clients, or stakeholders
  • Use tools like Excel, SQL, and financial software

Industries Financial Analysts Work In

Financial analysts are needed across many sectors—not just banks.

Financial analysts are needed across many sectors—not just banks.

  • Investment banking
  • Corporate finance
  • Insurance
  • Real estate
  • Tech startups
  • Government and nonprofits
  • Healthcare

Educational Path: Degrees and Certifications

A bachelor’s degree is typically the minimum requirement to become a financial analyst, but certifications and graduate degrees can significantly boost your career prospects.

Bachelor’s Degree in Finance or Related Fields

Most entry-level financial analysts hold a bachelor’s in:

  • Finance
  • Accounting
  • Economics
  • Business administration

Master of Business Administration (MBA)

An MBA is often required for senior analyst or management roles, especially in investment banking or corporate strategy.
  • Duration: 1–2 years
  • Focus: Advanced financial theory, leadership, and strategy

Chartered Financial Analyst (CFA) Certification

Highly respected in investment roles, the CFA credential requires:

  • A bachelor’s degree (or final-year status)
  • Four years of work experience
  • Passing three rigorous exams focused on investment management and ethics

Other Certifications

  • Certified Financial Planner (CFP) – Good for analysts focusing on personal finance
  • FINRA Licenses (e.g., Series 7, Series 63) – Required for certain investment roles

Must-Have Skills for Financial Analysts

Being a financial analyst goes beyond crunching numbers. The role requires a blend of technical, analytical, and soft skills to interpret data and communicate insights effectively.

  • Data Analysis

    Analysts must sift through complex datasets, detect patterns, and draw actionable conclusions.

  • Excel & Financial Modeling

    Advanced Excel skills are essential—formulas, pivot tables, and building financial models are core to the job.

  • Forecasting & Budgeting

    You’ll frequently build forecasts based on historical data and industry benchmarks to guide strategic decisions.

  • Communication

    Analysts often present findings to executives or clients, so the ability to turn complex data into clear insights is crucial.

  • Attention to Detail

    Precision is key when preparing reports or identifying inconsistencies in data.

Job Outlook and Salary Potential

The career outlook for financial analysts remains strong, driven by increasing data availability, global financial complexity, and market volatility.

Job Growth

According to the Bureau of Labor Statistics, employment for financial analysts is projected to grow 8% from 2022 to 2032, faster than the average for all occupations.

Average Salary Ranges

  • Entry-Level Analyst: $60,000–$75,000
  • Mid-Level Analyst: $85,000–$100,000
  • Senior Analyst / Finance Manager: $110,000–$150,000
  • Top-Level or Specialized Roles (e.g., Hedge Funds): $200,000+

How to Start Your Financial Analyst Career

Even if you’re new to finance, there are clear steps you can take to break into this field.

Entry-Level Tips

  • Get a relevant degree – Aim for finance, economics, or business
  • Build Excel and financial modeling skills
  • Take internships – Experience is critical for landing your first job
  • Use job boards like eFinancialCareers, LinkedIn, and Indeed
  • Tailor your resume to highlight analytical and communication skills

Online Learning and Self-Education

You don’t have to wait until graduation to start building financial analyst skills. Online platforms offer affordable, flexible learning.

Conclusion

A career as a financial analyst is both intellectually rewarding and financially lucrative. With roles available across multiple industries—from tech to healthcare to Wall Street—this career path offers variety, stability, and strong growth potential. Whether you’re just starting or planning a career switch, all you need is the right combination of education, technical skills, and curiosity about the financial world.

💡 Ready to launch your financial analyst career? Explore flexible online degrees, certifications like the CFA, or jumpstart with Excel and data analysis courses today!