You do not need a degree to become a financial advisor, but you do need specific licenses and certifications that require passing exams
A four-year college degree is not a legal requirement to work as a financial advisor. However, most financial advisors do hold a bachelor's degree, and the path to becoming one involves obtaining licenses through the Financial Industry Regulatory Authority (FINRA) and often earning credentials like the Certified Financial Planner (CFP) mark. The actual barrier to entry is not a diploma but passing the exams required by your state and your employer.
The specific licenses and certifications you need depend on what type of financial information you plan to give. Someone selling stocks or mutual funds needs different credentials than someone offering tax information or insurance products. Your employer — whether a brokerage firm, bank, or independent practice — will require you to pass certain exams before you can legally conduct business.
Key Takeaways
- A bachelor's degree is not required by law, but most employers and credential programs expect one or significant work experience in finance.
- You must pass FINRA exams (typically the Series 7 or Series 65) to sell securities, and these exams have no degree prerequisite.
- The Certified Financial Planner (CFP) credential requires 60 months of financial planning work experience or a combination of experience and education, but does not mandate a specific degree.
- State licensing for insurance products, investment information, or tax services each has its own exam and experience requirements separate from formal education.
- Many advisors earn degrees in finance, economics, or business, but others enter the field from accounting, law, or unrelated careers and obtain licenses through exam preparation alone.
FINRA licenses: what you need to pass and when
If you want to sell stocks, bonds, mutual funds, or other securities, you must pass a FINRA exam. The most common are the Series 7 (General Securities Representative Exam) and the Series 65 (Uniform Investment Adviser Law Exam). Neither exam has an educational prerequisite — you can sit for them with only a high school diploma, though most test-takers have some college or work experience.
Your employer sponsors you to take the exam, meaning they file paperwork with FINRA on your behalf and you study and pay for the test through them. The Series 7 covers stocks, options, bonds, and mutual funds; the Series 65 covers investment advisory services. Some advisors take both. The exams are multiple-choice, administered at testing centers, and you must score at least 72 percent on the Series 7 and 73 percent on the Series 65 to pass.
Preparation typically takes two to four months of study, depending on your background. Many people use study materials from their employer, third-party prep companies, or both. Once you pass, your license is valid as long as you work in the industry and complete continuing education requirements every two years.
State insurance licenses for selling insurance products
If you plan to sell life insurance, health insurance, or annuities, you need a state insurance license. Each state runs its own licensing program, so requirements vary by location. Most states require you to pass a written exam, pay a fee, and sometimes complete a pre-exam course.
Like FINRA exams, state insurance exams have no degree requirement. You can be licensed to sell insurance in your state with a high school diploma and a passing exam score. However, some states require you to complete a certain number of hours of pre-licensing education — typically 20 to 40 hours — before you sit for the exam. This education is not a degree; it is a short course covering state insurance law and product basics.
Insurance licenses must be renewed periodically, usually every one to three years depending on your state, and renewal requires continuing education hours.
The Certified Financial Planner credential and its education path
The Certified Financial Planner (CFP) mark is the most widely recognized credential in financial planning. It is not a license but a voluntary certification that signals you have met education, exam, and ethics standards. The CFP Board, a nonprofit organization, administers the credential.
To sit for the CFP exam, you must have 60 months (five years) of financial planning work experience, or you can substitute education for some of that experience. If you hold a bachelor's degree in any field, you need only 36 months of work experience. If you hold a graduate degree in any field, you need only 24 months. You do not need a degree in finance or business — a degree in any subject counts toward the education requirement.
The CFP exam itself is a six-hour test covering financial planning, tax planning, estate planning, investment management, and insurance. You must score at least 70 percent to pass. After passing, you must complete 30 hours of continuing education every two years to keep the credential active.
What a degree does and does not do for you
A bachelor's degree in finance, economics, business, or accounting can shorten your path to becoming a financial advisor, but it does not replace the licensing exams. A degree gives you knowledge that may help you study for FINRA or CFP exams faster, and it may make you more competitive when explore for entry-level positions at firms. However, the degree itself does not authorize you to give financial information or sell securities.
Many financial advisors do not have degrees in finance or business. Some earned degrees in unrelated fields — engineering, history, nursing — and then entered the financial services industry later. They took the same licensing exams as anyone else and obtained the same credentials. The degree helped them get hired or move faster through the ranks, but the license is what allows them to work.
Some firms prefer or require a bachelor's degree as a hiring standard, even though it is not legally necessary. This is a company policy, not a regulatory requirement. Other firms, particularly smaller independent practices or insurance agencies, may hire people without a degree if they are willing to study for and pass the required exams.
Alternative paths: experience instead of formal education
If you do not have a bachelor's degree, you can still become a financial advisor by meeting the work experience requirements for credentials like the CFP. The CFP Board allows you to substitute five years of financial planning experience for a degree when calculating whether you meet the 60-month experience requirement. This means you could work in a financial services role — even in a support position — for five years, then sit for the CFP exam without ever earning a degree.
Similarly, FINRA licenses have no experience requirement at all. You can pass the Series 7 or Series 65 with no prior work in finance, though most employers will not hire you without some background. Some firms offer training programs for entry-level candidates, teaching them the basics before they study for the exam.
The trade-off is time and opportunity cost. A degree typically takes four years and costs money upfront, but it may help you land a job faster and move into advisory roles sooner. The experience-only path takes longer but avoids tuition and allows you to earn while you work toward credentials.
How employers view education and credentials
Large brokerage firms and wealth management companies often prefer or require a bachelor's degree as a screening tool, even though it is not legally mandated. They may use it to filter applications or to determine starting salary and advancement speed. However, smaller firms, independent advisors, and insurance agencies are often more flexible about educational background if you hold the necessary licenses.
Credentials matter more than the degree itself. A person with a high school diploma and a CFP mark is often more credible to clients and employers than someone with a bachelor's degree and no credentials. Employers and clients care that you have passed rigorous exams and committed to continuing education, which the credential demonstrates.
Your work history in financial services — even in roles like customer service, operations, or compliance — can sometimes substitute for a degree when explore for advisor positions. Firms may value someone who has spent two years in a support role at a brokerage over someone fresh out of college with no industry experience.
Frequently Asked Questions
Can I become a financial advisor with just a high school diploma?
Yes, legally you can pass FINRA exams and obtain state licenses with a high school diploma. However, most employers expect at least some college education or relevant work experience. You would need to find a firm willing to hire and train you, which is more difficult without a degree or industry background, though not impossible.
Do I need a degree to get the CFP certification?
No. The CFP Board requires 60 months of financial planning work experience, but you can meet this requirement without a degree. If you have a bachelor's degree in any field, you need only 36 months of experience. A degree speeds up the timeline but is not mandatory.
What if I have a degree in something other than finance?
A degree in any field counts toward CFP requirements and makes you more competitive for hiring. You will still need to pass FINRA and state licensing exams, which test financial knowledge regardless of your degree subject. Many successful advisors have degrees in unrelated fields.
How long does it take to become a financial advisor without a degree?
If you enter the field without a degree, you typically need to work in a financial services role for several years while studying for and passing licensing exams. The timeline depends on your employer, how quickly you pass exams, and whether you pursue credentials like the CFP. Most people take three to five years to reach an advisor role.
Will I earn less as a financial advisor without a degree?
Compensation depends more on your credentials, licenses, and the clients you serve than on whether you have a degree. However, some large firms may offer lower starting salaries or slower advancement to people without degrees, even if they hold the same licenses as degree-holders.