Finance vs. Economics Degree: What’s the Difference? - Bay Atlantic University - Washington, D.C. (2024)

Table of Contents
  1. What Is Finance?
  2. What Is Economics?
  3. Finance vs. Economics Degree: What’s the Difference?
    1. Courses
    2. Skills
  4. Is One Degree Harder Than the Other?
  5. Finance vs. Economics Jobs and Salaries
  6. Frequently Asked Questions (FAQs)
    1. What is the main difference between a finance degree and an economics degree?
    2. What kind of courses can I expect in a finance degree program?
    3. What skills do I need to succeed in a finance career?

For the everyday person, finance and economics may sound like the same thing. Although they are both business-related topics, they are, in fact, very different. The main topics of a finance degree are financial markets, investments, and money management.

In contrast, an economics degree covers economic systems, public policy, and micro- and macroeconomic principles. People interested in these areas can make informed decisions about their academics and career paths once they understand the distinctions between these two degrees. Hence, this article will address the difference between finance vs. economics major and finance vs. economics jobs and salaries.

What Is Finance?

Finance studies how individuals, businesses, and organizations manage and allocate their financial resources. It involves analyzing and making decisions about using money, investments, and financial instruments such as stocks, bonds, and derivatives.

Personal and business finance are the two main divisions in this area. Personal finance is the study of the financial choices that people or families make, including retirement planning, budgeting, and saving.

On the other hand, corporate finance is concerned with the financial decisions companies and organizations make, such as risk management, capital budgeting, and financial planning.

Modern societies require the use of finance. It is crucial in determining the overall health and development of economies and businesses. The demand for professionals with financial knowledge is strong across many industries, including banking and investment management.

What Is Economics?

Finance vs. Economics Degree: What’s the Difference? - Bay Atlantic University - Washington, D.C. (1)

Economics studies how people, organizations, and societies distribute and employ resources, such as capital, labor, and land, to create goods and services. It examines how economic agents choose what to produce, how, and for whom.

Microeconomics and macroeconomics are the two main subfields of economics. Microeconomics studies how particular economic agents behave, such as households, businesses, and markets. Macroeconomics, on the other hand, examines how the entire economy behaves, including issues like inflation, unemployment, and economic expansion.

Economics is critical in shaping public policy and guiding public and private decision-making. It analyzes and addresses various economic issues, including income inequality, environmental sustainability, international trade, and economic development.

Professionals with expertise in economics are in high demand across numerous industries, such as government, consulting, and academia.

Finance vs. Economics Degree: What’s the Difference?

The main difference between a finance degree and an economics degree is the focus and scope of the study. A finance degree focuses on the practical aspects of managing money and financial assets.

On the other hand, an economics degree is more theoretical and broad-based, covering a wide range of economic concepts and principles. While both degrees overlap in certain areas, there are still many differences.

Courses

A finance degree typically includes courses such as:

  • Financial Accounting
  • Corporate Finance
  • Investment Analysis
  • Risk Management
  • Financial Markets and Institutions

These courses give students knowledge of financial tools and strategies while concentrating on the practical aspects of managing finances, financial markets, and investments.

An economics degree typically includes courses such as:

  • Principles of Microeconomics
  • Principles of Macroeconomics
  • Econometrics
  • Economic Theory
  • International Economics

These classes give students a thorough grasp of how people, businesses, and governments act within the economy by concentrating on economics theoretical and empirical aspects.

Mathematics, statistics, and data analysis classes are included in both finance and economics degrees to help students develop the quantitative skills required to evaluate financial and economic data.

Skills

Finance vs. Economics Degree: What’s the Difference? - Bay Atlantic University - Washington, D.C. (2)

To be successful in either of the two areas, you must have a certain set of skills. Finance skills developed through a finance degree primarily focus on teaching students how to manage money, evaluate risks and returns, and make wise investment choices and include:

  • Financial analysis and modeling
  • Investment analysis and portfolio management
  • Risk management and mitigation strategies
  • Understanding of financial markets and institutions
  • Financial planning and forecasting
  • Knowledge of financial regulations and compliance
  • Business and financial strategy development
  • Communication and presentation skills

Skills developed through an economics degree concentrate on examining and comprehending economic systems, policies, and behavior and making public policy and economic development recommendations. They include:

  • Analytical and critical thinking
  • Quantitative analysis and data interpretation
  • Economic theory and policy analysis
  • Understanding of micro and macroeconomic principles
  • Knowledge of international economic systems and policies
  • Research and report writing
  • Public policy analysis and development
  • Communication and presentation skills

Is One Degree Harder Than the Other?

You might be wondering, “Is finance harder than economics or the other way around?” Whether a finance degree or an economics degree is harder can depend on the individual’s strengths, interests, and career goals. Although an advanced understanding of mathematical and quantitative concepts is necessary for both degrees, the focus and depth of the study vary.

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As a finance degree heavily depends on financial analysis and modeling, students may find the material more difficult if they struggle with mathematical concepts. However, students seeking an economics degree might have difficulty understanding abstract ideas like economic theory and policy analysis.

Choosing a degree that aligns with your interests and career goals is essential, as this can help you stay motivated in your studies.

Finance vs. Economics Jobs and Salaries

Finance vs. Economics Degree: What’s the Difference? - Bay Atlantic University - Washington, D.C. (3)

Both finance and economics offer various job opportunities with competitive salaries. According to the Bureau of Labor Statistics (BLS), the U.S. median wage for business and financial occupations was $76,850 in May 2022. However, the specific jobs and salaries may vary based on the two degrees’ focus and scope of study.

Jobs in finance may include:

  • Accountants and Auditors – $78,000
  • Budget Analysts – $82,260
  • Cost Estimators – $71,200
  • Financial Analysts – $96,220
  • Project Management Specialists – $95,370

According to the BLS, the median wage for economists in the U.S. was $113,940 in May 2022. Jobs in economics may include:

  • Economics Teachers – $61,474
  • Environmental Economists – $68,047
  • Financial and Investment Analysts – $79,817
  • Financial Risk Specialists – $100,000
  • Political Scientists – $73,046

The Bottom Line

Choosing between a degree in economics or finance depends on your interests and career goals. A finance degree might be more suitable if you are interested in managing investments, financial planning, or business finance. An economics degree might be more appropriate if you are engaged in economic research, policy analysis, or public service. Ultimately, the decision is yours.

Frequently Asked Questions (FAQs)

What is the main difference between a finance degree and an economics degree?

A finance degree focuses on the practical management of money, investments, and financial assets, while an economics degree covers theoretical and broad-based economic concepts, principles, and policies.

What kind of courses can I expect in a finance degree program?

A finance degree program courses typically include financial accounting, corporate finance, investment analysis, risk management, and financial markets and institutions.

What skills do I need to succeed in a finance career?

Financial analysis, investment management, risk assessment, understanding of financial markets, strategic planning, and communication skills are essential for a finance career.

Finance vs. Economics Degree: What’s the Difference? - Bay Atlantic University - Washington, D.C. (2024)

FAQs

What is the difference between a finance degree and an economics degree? ›

Although they are both business-related topics, they are, in fact, very different. The main topics of a finance degree are financial markets, investments, and money management. In contrast, an economics degree covers economic systems, public policy, and micro- and macroeconomic principles.

What pays better, economics or finance? ›

The earning potential and salaries are comparable between the finance and economics fields. While the professions are related to one another, they're also very diverse, and salary can range based on the type and level of the job. As candidates gain more experience, they can typically negotiate for higher salaries.

Which is harder, economics or business? ›

For economics, you don't have to study as much but at the same time you would do better in a business exam compared to an economics exam without studying because Economics is quite complex when it comes to the definitions as you have to use specific words which you could only remember if you studied.

What is the difference between a business major and an econ major? ›

The main difference in the two degrees is that the business degree provides a broader general education, meaning graduates can work in a number of fields. Economics degree holders are a bit more limited when it comes to the scope of suitable workplaces.

What is the main difference between finance and economics? ›

Finance and Economics are related, but not identical disciplines. Economics studies local or global markets, human behaviour, goods and services, etc. Finance focuses on financial systems and everything related: banks, loans, investments, savings, etc.

Can an economics degree get you a job in finance? ›

Pivoting careers into the industry can be much more difficult and requires building valuable and relevant expertise. You can absolutely break into finance with an economics degree.

Is finance a hard major? ›

Finance degrees are generally considered to be challenging. In a program like this, students gain exposure to new concepts, from financial lingo to mathematical problems, so there can be a learning curve.

Do finance majors make the most money? ›

Salaries in the finance industry

According to the U.S. Bureau of Labor Statics (BLS), careers in finance pay a median salary of $76,850 — 66% higher than the median salary for all occupations in the nation ($46,310).

Should I choose economics or business? ›

Want practical skills? The single biggest problem when you study economics is that it can be too broad, and too theoretical. It gives you very few skills that are immediately applicable within the workplace. Meanwhile business degrees specifically give you the skills need to help run a business.

Is business economics a lot of math? ›

Fact is, at the undergraduate level at many colleges and universities, economics is not a very math-intensive course of study. There are many diagrams in economics, but there is not a large amount of math. A proviso: The amount of math in the economics curriculum varies across colleges and universities.

Is economics a strong degree? ›

In terms of value for money, getting a bachelor's degree in economics generally pays off. According to our methodology for ranking degrees (more on that below), Economics has a weighted average “Economic Score” of 1.69. This puts economics degrees in the top 20% of all majors in terms of investment value.

What is a degree in finance? ›

A finance degree offers students a thorough understanding of banking, trading, and economics. Finance is the study, acquisition, and management of money and investments. The field includes banking, credit, debt, and capital markets activities, which are all driven by economic principles and practices.

Do economics or business majors make more money? ›

Graduates who major in business analytics earn the most ($66,000 on average per year) early on in their careers. For mid-career wages, finance and economics are the top earners ($100,000 on average per year), according to new data released by the Federal Reserve Bank of New York.

Does economics involve math? ›

Economics courses frequently use math techniques at a level beyond MATH 1110. Statistics and econometrics classes use material from integral calculus (MATH 1120), and core microeconomics, core macroeconomics, and many advanced electives use material from multivariable calculus (MATH 2130 or MATH 2220).

Is a finance degree worth it? ›

High earning potential: Many jobs in finance offer high salaries and growth potential, making it a lucrative career choice. Diverse career opportunities: With a finance degree, you can work in various roles and industries, from investment banking to risk management to financial planning.

Is an economics degree worth it? ›

If you're an undergraduate student, economics is a good major, although STEM subjects like engineering do lead to better earnings. An economics degree offers a solid return on your educational investment – compared to both business-adjacent degrees and those in the humanities.

Is a BS in economics better than a BA? ›

If you are more interested in the theory behind economics and its practical application, you should consider the B.A. degree since it offers more opportunities to take theory-based economic classes. If you are interested in the math behind economic decisions, the B.S. degree is a better choice for you.

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