When it comes to finding an internship, factors like location, company culture, and work/life balance are extremely important for students and early career professionals. But with soaring inflation, good compensation is what motivates candidates the most. 

According to Holly Andrews, a professor in coaching & behavioral change at Henley Business School, internships are a great tool to prepare you with the skills necessary to succeed in the workforce.

"Taking an internship either as part of your degree or once you have graduated is the best way to boost your employability," Andrews tells CNBC Make It. "Students who take internships are more likely to secure graduate-level employment and earn more on average than those who don't take an internship."

But where are interns making the most money? According to a new report from Business Name Generator (BNG), a site dedicated to helping businesses with branding, San Diego is the highest paying city for interns, with an average salary of "up to $4,100 a month." Based on internship opportunities, average salaries, working hours, and cost of living, BNG analyzed 50 global cities to determine the best places to seek an internship.

Based on BNG's report, here are the 10 highest paying cities for interns:

1. San Diego

Country: USA

Average Monthly Intern Salary (USD): $4,071

2. Ann Arbor

Country: USA

Average Monthly Intern Salary (USD): $4,000

3. Sydney

Country: Australia

Average Monthly Intern Salary (USD): $3,779

4. Boston

Country: USA

Average Monthly Intern Salary (USD): $3,770

5. Los Angeles

Country: USA

Average Monthly Intern Salary (USD): $3,618

6. Zurich

Country: Switzerland

Average Monthly Intern Salary (USD): $3,613

7. Stockholm

Country: Sweden

Average Monthly Intern Salary (USD): $3,357

8. Chicago

Country: USA

Average Monthly Intern Salary (USD): $3,223

9. Montreal

Country: Canada

Average Monthly Intern Salary (USD): $3,201

10. Austin

Country: USA

Average Monthly Intern Salary (USD): $3,169

Though Los Angeles is ranked at number five, BNG named the city the best overall for interns to get the most out of their experience.

"Los Angeles, California is the best global city for interns, with over 4,000 opportunities at the internship level and an average monthly salary of $3,618 USD, '' says BNG in the report. "For those looking for flexibility, remote positions make up nearly a quarter of the vacancies (24%). The city has 671 free skills and networking events to aid development and boost industry connections."

Certain industries also pay interns more — and tech companies, which are largely found in big cities, offer some of the best pay for interns and entry-level employees.

"The amount an intern can earn depends on the industry they want to work in. Tech companies tend to offer the most lucrative internships, which is perhaps why the search volume for companies like Apple, Microsoft and Meta reaches up to 118,000 per year," says a BNG spokesperson. "Interns can find other big-money opportunities in finance and marketing industries for example, which are often based in key cities globally," like New York City, Los Angeles, Chicago, and Boston.

Andrews also recommends that interns "think about finances" and take into account the cost of living for their desired city.

"The bright lights of the big cities may be tempting, but consider how affordable living and working there is. Lots of large organizations who employ many interns will be able to help with arranging shared accommodation for you, but if this isn't an option you will need to arrange accommodation in the city of your choice yourself, which can be very expensive. Also, consider costs such as transport and the general cost of living in a particular area."

Check out:

1 in 4 Gen Z employees worry that taking a lunch break makes them look bad at work

Companies' DEI plans often stall at 'frozen' middle management—here's how to fix it

This 30-year-old Etch A Sketch artist paid off over $13,000 in student loans in 30 days using TikTok

Sign up now: Get smarter about your money and career with our weekly newsletter