Everything You Need to Know About Financial Engineering Jobs

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Have you ever wondered what kind of jobs are held by people who have financial engineering degrees? While there are many other career paths available for this type of education, it’s important to know that financial engineering jobs can be found in many different industries and are often considered highly valuable because of the nature of their work. Before you decide that you want to work in this field, though, it’s important to understand some of the unique aspects of financial engineering careers that may impact your own personal goals and preferences as an employee.

What Is a Financial Engineer


A financial engineer is a professional who analyzes financial information and forecasts in order to predict trends and make projections.

This can include taking a look at current market conditions, budgeting strategies, potential risks, and more. In short, it’s someone who studies numbers for a living—and it could be exactly what you need if you’re already working in finance or want to start your own business.

Different Types of Career Paths


Whether you’re interested in following a traditional financial engineering career or pursuing an alternative, such as trading or investment banking, it helps to have an idea of what your options are.

At its core, financial engineering is about solving problems for businesses and investors—and every business problem has different angles. The strategies used will differ depending on how a company earns its money, where that money comes from, and how long it can continue generating cash.

Educational Requirements


According to Payscale, many entry-level engineering jobs for financial engineers require at least a bachelor’s degree in finance or economics. For high-level positions, though, having an advanced degree can make all of the difference. Some employers prefer candidates with master’s degrees in fields like mathematics or business administration.

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Job Description


A financial engineer, also known as a quantitative analyst, is a professional who uses advanced mathematical and analytical methods in order to create innovative ways of addressing finance problems.

In today’s world, many industries are facing huge growth challenges. And in these times of slow economic growth and high unemployment, financial engineers can help businesses meet their goals and overcome any obstacles that may be holding them back.

Salary Expectations


The average entry-level salary for a financial engineer is $65,000. This is one of those professions that has a wide range of compensation. The higher you go in seniority and skill level, the more you can expect to make as well.

Skills Necessary


A professional in financial engineering must possess advanced math and science skills, strong written and oral communication abilities, excellent time management and organizational skills, and a high level of personal discipline.

To ensure success as a financial engineer, it is also crucial to have an aptitude for modeling complex problems. Research shows that engineers who study finance early on are more likely to remain engaged in finance-related topics throughout their careers.

One of the most important skills needed by financial engineers is quantitative reasoning—the ability to understand concepts like basic arithmetic or algebra.

Pros & Cons of The Profession


The engineer moniker alone conjures up an image of a white-coated professional in a lab, tinkering with complex machinery. That kind of job is not what you get with financial engineering jobs—at least not exactly.

In fact, a lot of people think that financial engineers have control over how markets move, making them some sort of dark wizards capable of raising or lowering share prices and even causing financial meltdowns at will. The truth, however, is somewhat less…fantastical.