Top Colleges for $$ Finance Jobs
September 2023
Summary: Where you get your undergraduate degree can have a big impact on how much money you make in your finance career.
It’s all about the Benjamins…
Let’s say you’re planning a lucrative career in finance at an investment bank, private equity firm, investment capital group or hedge fund. And you’re looking to get the most bang for your buck from your undergraduate degree. Which universities regularly churn out graduates with the highest salaries? A 2023 study from the Burning Glass Institute (a nonprofit that studies employment trends) found that where you get your undergraduate degree can have a profound impact on how much money you make down the road. Specifically, they looked at your first ten years after graduation and asked: How much more do you make than the average person at your position?
The results…
Perhaps unsurprisingly, graduates from some of the most prestigious universities commanded the highest annual salaries in the decade following graduation. And MIT led the pack by a fairly large margin. On average, graduates of MIT who go into finance make about $48,000 a year more than the typical person at that same position. So, for example, if the average salary for a financial analyst is $100,000/year, then the average salary for a financial analyst who graduated from MIT is $148,000. That’s almost $50,000 in additional income every single year: the equivalent of a 50% raise.
The other usual suspects made the list as well: #2 Harvard, #3 Princeton, #4 UPenn, #5 Dartmouth, #6 Yale, etc. It should be noted, however, that there isn’t a dramatic difference between any of these other Top 10 colleges. If you graduated from any of these elite universities, you’re making more than $30,000 above the national average, so you’re doing really well. The difference between #2 Harvard and #10 UChicago is only $8,000 a year. After taxes, that’s only about $5,000. So don’t sweat it. All of these schools give you a generous salary boost.
The next 10 on the list…
Fortunately, this salary advantage isn’t restricted to just 10 elite colleges. There are 10 more colleges on the list that also give you a sizeable salary boost over your peers. This “Top 20” is also populated with exceptional undergraduate institutions: #11 Stanford, #15 Cornell, #19 Johns Hopkins, and #20 Northwestern, to name a few (see chart).
There are also a few small liberal arts colleges on the list, such as: #12 Bowdoin, #14 Swarthmore, and #17 Williams, which means you don’t need to go to a big university to get that edge. Basically, if you get into any of these extremely selective schools and major in anything finance-related, you’ll do great. Sample majors include: Economics, Mathematics, Finance, Statistics, Business, Accounting, and some would argue Computer Science or Engineering.
Top Public Universities…
Looking to save a lot on undergraduate tuition? Smart shoppers know a bargain when they see one, and there are a number of excellent public universities that give you a boost in salary when you go into finance. Assuming you’re an in-state resident, you can cut your college costs in half — if not more — by attending one of the state schools on the list. #1 University of Virginia, #2 University of Michigan, #4 UC Berkeley, and #9 UCLA are all excellent universities in their own right, and many out-of-state residents gladly fork over big bucks to go there.
There are also multiple lesser-known New York colleges on the list, including #3 Binghamton, #6 City University of New York Bernard Baruch, #8 Stony Brook, and #10 State University of New York at Albany. Having close connections to Wall Street for internships and networking undoubtedly helps students at these New York colleges. On average, these public universities won’t boost your salary nearly as much as some of the elite private institutions, but they’re much easier to get into, and generally more affordable to attend. Now go make that money.
A Final Word of Caution…
Although there’s nothing inherently wrong with wanting to pursue a career in finance so you can make a lot of money, you should never bring this up when applying to a top-tier college such as the Ivy Leagues. Top universities frown upon money-making as an end goal. They know that that’s why a lot of students go into business. But they’re disinclined to admit anybody who’s so patently transparent about it. Instead, focus your application on how you fell in love with numbers, or how you want to change the world through philanthropic investments, or how you want to reform responsible banking practices from the inside. Anything will sound better than saying you just want to own three or four homes.
MIT isn’t just for science. Graduates of MIT who go into finance earn considerably more than their peers, starting the day they graduate.
Dartmouth is the smallest of the Ivies with fewer than 5,000 undergraduates. But it’s known for placing a disproportionate number of graduates into high-paying finance jobs.
UPenn’s Wharton is the top-ranked business school in the world, so it’s no surprise that UPenn undergrads who go into finance benefit from that expertise and exposure and make so much more than their peers.
While there’s no set major for a successful career in finance, good options include: Math, Statistics, Economics, Business, or Accounting.
CUNY Bernard Baruch only costs in-state residents $7,000/year, and with financial aid, the average New York student pays less than $3,000.
Even if making a lot of money is your end goal, you don’t want to broadcast that on your college application. Instead, try to find a more noble and selfless objective that will resonate with admissions officers.