Young Money Summary

Is a coveted Wall Street analyst job a dream or a nightmare? Kevin Roose's Young Money peels back the curtain to reveal the demanding, often painful truth behind the glamour of finance.

1. Wall Street's Recruitment Starts Early and Aggressively

Wall Street firms target fresh college talent long before they're out of school. These firms descend upon Ivy League campuses, vying for students before other industries even start hiring. The urgency to secure graduates is palpable as they fight to hire the "best of the best."

The recruitment process begins as early as the fall semester of a senior’s college year. At prestigious schools like Princeton and Harvard, firms woo future analysts with extravagant presentations, including flashy videos and slogans meant to inspire excitement about finance careers. Resources pour into interview workshops, lavish dinners, and a level of courtship that feels more like persistent pursuit than standard recruitment.

Many students fall for the charm offensive. They’re dazzled by companies’ unparalleled effort to make finance seem thrilling and consequential. Ivy League grads often don’t see similar attention from other industries, which makes Wall Street seem incredibly alluring, even for students without a background in finance.

Examples

• At Princeton in 2006, 46% of grads entering the workforce went to finance.
• Harvard grads in 2008 had 28% of job placements within the financial sector.
• Morgan Stanley's pitch at Wharton showcased phrases like “Boundaries will be shattered,” following a slick, high-energy video.

2. Joining Wall Street Often Stems from Uncertainty, Not Passion

Many young professionals landing finance roles aren’t driven by passion for the industry but rather by the lack of other options. Surprisingly, majoring in finance isn’t a requirement to step into these roles. Firms care more about which school a candidate attended than their chosen field of study.

Top talent from schools like Harvard or Brown often gravitate to Wall Street simply because recruitment there is hard to miss. Graduates find the financial sector a tempting way to pay off staggering student loans while gaining work experience. The jobs offer significant compensation and require only an initial two-year commitment, leading to the mindset of "two and out," which many find attractive.

This creates a wave of "accidental financiers" who may not originally aspire to banking careers but dive in because the opportunity is available at the right time. Their eventual dissatisfaction often stems from this lack of passion, as the grueling conditions soon overshadow the financial benefits.

Examples

• J.P. Murray, recruited at Credit Suisse, notes the firm's Ivy preference, though exceptions exist for non-Ivy graduates.
• Analysts commonly use the "two and out” plan to justify short-term financial commitments.
• For many recruits facing $100,000 in student debt, Wall Street positions seem like the most immediate solution.

3. Working Hours Are Brutal

Being a first-year analyst on Wall Street means having a nonstop schedule. A work week often reaches an exhausting 100 hours, with analysts spending 16-hour weekdays and devoting much of their weekends to work. The pressure not only wears them down physically but also hinders personal lives.

During these endless hours, analysts are expected to remain constantly available. This means being prepared to dive into tasks at moments' notice—whether it’s 3 a.m. on a weekday or Christmas morning. The phrase "banker nine-to-five" doesn’t signify a normal workday but rather a brutal shift beginning at 9 a.m. one day and ending at 5 a.m. the following morning.

Management adds to the challenge by creating a harsh, unsupportive environment. Bosses provide little encouragement, even to high-performing analysts. Mistakes lead to berating rather than support, perpetuating a cycle of stress without any reprieve.

Examples

• Analysts report 16-hour weekdays and 10-hour weekend work schedules, totaling about 100 hours weekly.
• Ricardo Hernandez from J.P. Morgan described weeks of "banker nine-to-five” shifts.
• Chelsea Ball at Bank of America Merrill Lynch recalls receiving no defense for making an accidental error bosses could have addressed beforehand.

4. Health and Relationships Suffer Severely

The grueling demands of Wall Street jobs don’t leave much room for personal lives or physical well-being. Sleep deprivation, overwhelming stress, and workspace isolation take a toll, severing relationships and deteriorating health.

Wall Street firms attempt to accommodate employees’ needs within their towering buildings. They establish in-house amenities like gyms and coffee shops, aiming to limit ties to the outside world. This environment almost forces young analysts to prioritize work over their loved ones.

Prolonged stress and intense schedules lead to serious health issues. Arjun Khan's story illustrates this risk when his demanding lifestyle worsened a preexisting health condition, ultimately hospitalizing him. Beyond physical effects, emotional strain and lost relationships are standard sacrifices many young financiers face.

Examples

• Derrick Havens at Wells Fargo ended a four-year relationship after repeatedly prioritizing work over his partner.
• Arjun Khan’s time at Citigroup exacerbated his Goodpasture syndrome, forcing him to question his career choice.
• In-house gyms, barbers, and cafes anchor employees to their office bubbles.

5. Young Analysts Feel Disconnected from Wall Street's Reputation

New analysts often feel uncomfortable being associated with Wall Street's infamous practices. Post-2007 crash protests highlighted sentiments against bankers’ perceived greed, splitting young analysts’ identification with their workplace culture and the public's opinion.

Many young professionals found themselves quite removed from the industry’s tarnished senior leadership. They often handled mundane tasks, receiving minimal involvement in major deals. The public’s grouping of all finance workers into “villains” felt profoundly unfair to those just starting out.

Some, like Jeremy Miller-Reed, preferred lying about their job over admitting they worked in finance. This emotional detachment from Wall Street’s culture fosters disillusionment early among recruits.

Examples

• A J.P. Morgan analyst likened blanket accusations to punishing an entire sports team for one player’s actions.
• Goldman Sachs analyst Jeremy Miller-Reed endured protests by hiding his job identity.
• Junior analysts were often relegated to data-heavy, repetitive tasks like Excel spreadsheets.

6. Wall Street Changes Analysts Over Time

Sticking it out beyond the first year on Wall Street often leads to lasting personality transformations. Analysts start adopting cutthroat habits and cynical mindsets—characteristics reflective of their surroundings.

Those who remain past their two-year contracts trade their former idealism for pragmatism. While many aim to leave finance altogether, others stay for stability. The demands of Wall Street normalize highly transactional relationships, further separating analysts emotionally from loved ones.

Staying longer often means embracing the Wall Street mentality. Being part of secret groups like Kappa Beta Phi, known for indulgent initiation rituals, highlights this transformation and the entrapment of money-driven mentalities.

Examples

• Those planning to leave for hedge funds or less stressful industries often change their minds due to job stability.
• The Kappa Beta Phi club, exclusive to the financially elite, reinforces the shift to materialistic priorities.
• Analysts like Derrick Havens accept disconnects with loved ones as a necessary trade-off.

7. Wall Street's Pay Isn't as Appealing as It Sounds

For all the sacrifices analysts make, one would expect exceptional rewards. While entry-level compensation seems generous on paper, the long hours reduce pay back to what one might earn doing typical hourly roles.

Most entry-level analysts receive $70,000 in base pay with bonuses ranging from $20,000 to $90,000. However, once spread across their relentless hours, some analysts calculate their pay is equivalent to $16 per hour. Even with “impressive” bonuses, many question whether the strained lifestyle is worthwhile.

Many alternatives with better work-life balance could bring similar financial stability. Creative fields, though less financially lucrative in their early stages, often yield greater personal satisfaction than finance.

Examples

• A Wall Street analyst calculated hourly pay to be around $16 after factoring overtime hours.
• Bonuses sometimes balloon to $90,000 but rarely outweigh the cost of steep sacrifices.
• Jeremy Miller-Reed left his Wall Street job after realizing his monetary compensation wasn’t worth its emotional toll.

Takeaways

1. Before pursuing a finance career, reflect on your true motivations and passions to ensure they align with the job’s realities.
2. Explore diverse fields beyond Wall Street; financial success doesn’t always require sacrificing health and relationships.
3. Prioritize balance and well-being over monetary incentives—short-term gains are rarely worth long-term consequences.