How to Become a Budget Analyst

In order to become a budget analyst, you will need to earn a bachelor’s degree, develop relevant skills, and gain experience in the field.

Education for Budget Analysts

Get a Bachelor’s Degree

If you have not yet earned a bachelor’s degree or a master’s degree, begin your research today to find a college which will fit your budget, geographics and goal of becoming a budget analyst. Make sure to scrutinize colleges and universities carefully in ascertaining their reputations. Investigate thoroughly, and make sure they are an accredited institution of higher learning. Accreditation means the college or university has maintained rigorous academic standards and has received the stamp of approval from one or more of the following agencies:

Northwest Commission on Colleges and Universities (NWCCU)
Western Association of Schools and Colleges (WASC)
New England Association of Schools and Colleges (NEASC)
Middle States Commission on Higher Education (MSCHE)
Southern Association of Colleges and Schools (SACS)

Accreditation also paves the way for receiving federal financial aid. In other words, certain grants and loans will not be available to you if you choose to attend a non-accredited school. Read reviews as to their suitability for your goals. Online programs are available from some of the most respected colleges and universities, and of course, there are traditional on-campus options. One option available to you if you cannot financially afford to attend a four-year program initially, is attending a junior or community college to satisfy your general education requirements. One important thing to remember—make sure your credits from the junior or community college will transfer to the 4-year college you are interested in eventually attending. Also, many colleges offer fast-track programs where you can earn a bachelor’s degree and a master’s degree concurrently. These programs are well worth your consideration. A master’s degree will bump you to the front of the line when competing within the job market.

Target Degrees

Finance, accounting, economics, and business administration should be the focus of your degree-granting program. Here are some bachelor’s degrees to consider:

Bachelor’s Degree in Finance

Any bachelor’s degree in finance will afford you a strong foundation in financial principles, including budgeting, financial analysis, and investment management. You can look forward to classes such as financial markets, corporate finance, and financial statement analysis, which are all paramount to budget analysis.

Bachelor’s Degree in Accounting

If you choose to get a Bachelor’s Degree in Accounting, you will learn essential principles and practices regarding financial reporting, auditing, taxation, and managerial accounting. Budget analysts often need to interpret financial statements, track expenses, and ensure compliance with accounting standards, making an accounting degree another good option.

Bachelor’s Degree in Economics

The study of economics will give you two new perspectives on the world of finance—a macro, or big picture assessment, as well as a micro, or detailed perspective. Harvard University describes macroeconomics this way, “”Macroeconomics is the study of the behavior of the economy as a whole, including topics such as inflation, unemployment, and economic growth. It examines the aggregate effects of individual decisions made by households, firms, and governments, and explores how government policies can influence economic outcomes on a national and global scale.” Harvard defines microeconomics as “Microeconomics is the study of individual decision-making units, such as households and firms, and how they allocate scarce resources. It examines how individuals make choices based on preferences, constraints, and incentives, and analyzes the interactions between buyers and sellers in markets for goods and services.”

Budget analysts need to understand economic trends, inflation rates, and their impact on budgeting decisions, making an economics degree a suitable option for aspiring budget analysts.

Bachelor’s Degree in Business Administration

A degree in business administration provides a broad understanding of various business functions, including finance, management, marketing, and operations. While not as specialized as finance or accounting degrees, a business administration degree can still provide relevant skills and knowledge for a career in budget analysis.

Bachelor’s Degree in Public Administration or Public Policy

If you happen to be interested in working as budget analysts in a government agency or a non-profit organization, a degree in public administration or public policy may be beneficial. These programs often include coursework in public finance, budgeting processes, and policy analysis, which are directly applicable to budget analysis roles in the public sector.

Develop Industry-Related Skills

As one might expect, the key aptitudes in being a successful budget analyst are comprised of strong analytical skills, attention to detail, and proficiency in financial analysis. Familiarize yourself with budgeting software and spreadsheet programs like Microsoft Excel. Communication skills are also essential, as budget analysts often need to explain complex financial concepts to non-financial stakeholders.

Analytical Skills

Some suggestions regarding the development of your analytical skills include, practicing critical thinking by taking various topics and dissecting them by challenging any assumptions presented, evaluating related evidence, and considering alternative perspectives. Then practice drawing unique conclusions—your analysis.

Quantitative Skills

Consider this while choosing what bachelor’s degree program you will enroll in- mathematics and statistics provide valuable tools for analyzing data and making informed decisions. The more you practice mathematical concepts such as algebra, calculus, and probability, and learning statistical techniques for data analysis, the better you will be at budget analysis. Even if you choose a business degree, or one that does not involve the aforementioned, make sure to take at least one formal class in these topics.

Problem Solving Skills

Budget analysts ultimately solve problems for the companies/agencies for whom they work. Begin now to become an adept problem solver. Engage in problem-solving activities regularly. Start with simple puzzles or brainteasers and gradually tackle more complex problems. Break down large problems into smaller, more manageable components and develop systematic approaches to solve them.

Get Experience in the Field

While you are working on your bachelor’s degree, seek out entry-level positions or any position tangential to the profession. Some suggestions are:

Budget Assistant
Accounting Assistant
Junior Budget Analyst
Financial Analyst
Financial Intern

Internships are the best route for achieving your goal to becoming a budget analyst because the corporations, government contractors, consulting firms, non-profit organizations and financial institutions which offer them are seeking out future employees. Internship programs typically are conducted during the summer months from 6-10 weeks. Some of the corporations which have prestigious internships include IBM, Microsoft, Amazon, Google, JPMorgan Chase, Goldman Sachs, Procter & Gamble, Johnson & Johnson, and Walmart. Government contractors such as Lockheed Martin, Northrop Grumman, Boeing, Raytheon, and General Dynamics have internship opportunities as well. Some consulting firms to check out would be McKinsey & Company, Bain & Company, Boston Consulting Group (BCG), Deloitte, PricewaterhouseCoopers (PwC), Ernst & Young (EY), and KPMG. Further, Bank of America, Wells Fargo, Morgan Stanley, Goldman Sachs, and Fidelity Investments have well known internship programs, as does the United Nations (UN), World Bank, International Monetary Fund (IMF), and the World Health Organization (WHO).

Job Outlook for Budget Analysts

According to the U.S. Bureau of Labor Statistics (https://www.bls.gov/), Budget Analysts have promising opportunities for the time period spanning 2022-2032. The field is growing by 3% per year, which is the average growth rate. Government experts predict that each year over 3,600 openings will become available (between 2022-2032), due to replacing workers who leave the profession, leave the work force and/or retire. Over the ten-year time span (2022-2032) it is projected that a total of 1,700 new positions will be created. In 2022 there were 51,600 individuals working as budget analysts. The median pay per year was $82,260, while the median hourly wage was $39.55. (As a reminder, the “median” amount is not an average, it is the middle value of a dataset. For the U.S. BLS definition go to: https://www.bls.gov/cps/definitions.htm#medianearnings) .

By pursuing your education, participating in an internship or having experience from an entry-level job, and developing your skillset, you will be on your way to a rewarding and satisfying career as a budget analyst.