Is a Finance Degree Worth It? - Intelligent (2024)

Is a Finance Degree Worth It? - Intelligent (1)

Regarding higher education, choosing a major is one of the most important decisions a student can make. Finance is a popular major that can prepare you for a wide range of careers, but it’s essential to carefully consider your options before deciding if a finance degree is right for you.

Earning a finance degree requires significant time, money, and energy, but the results can be advantageous.

To help you determine if this is the right path for you, here’s what you need to know about the types of jobs you can get with a finance degree, how much a finance degree costs, and the pros and cons of majoring in finance.

Types of Finance Degrees

There are several types of finance degrees, including a Bachelor of Science (BS) in Finance, a Master of Science (MS) in Finance, and a Master of Business Administration (MBA) with a concentration in finance. Some universities also offer specialized finance degrees, such as a Master of Financial Planning (MFP) or a Master of Investment Management (MIM).

A BS in Finance is typically a four-year program that provides students with a foundational understanding of finance and related topics such as accounting, economics, and statistics. An MS in Finance is a more specialized degree that students can complete in one to two years and focuses on advanced finance topics such as financial modeling, risk management, and investment analysis. An MBA with a concentration in finance is a versatile degree that combines business skills with a focus on finance.

Your long-term career goals will determine which degree is right for you. Bachelor’s degrees are generally adequate for entry-level and mid-level positions, while a master’s degree might be necessary for higher-level leadership positions.

Why Get a Finance Degree?

People pursue a finance degree for several reasons. A finance degree can provide a strong foundation for a career in finance or related fields. According to the Bureau of Labor Statistics, jobs in business and finance are expected to grow by 7% over the next decade, and professionals in this field earn a competitive median annual salary.

Nearly all organizations need a finance professional, providing this field with job security, stability, and countless opportunities for advancement.

Types of Jobs Can You Get With a Finance Degree

Many jobs are available to those with a finance degree. Some typical roles include financial analyst, investment banker, financial planner, risk manager, and corporate treasurer. If you pursue a master’s degree, you’ll qualify for more leadership positions.

Here are a few of the most common types of jobs in finance.

Financial Analyst

Financial analysts help businesses and individuals make investment decisions by analyzing financial data and trends. Financial analysts often work for banks, investment firms, or other financial institutions.

Median Salary (2021): $95,570

Financial Planner

Financial planners help individuals and families manage and plan their finances, including retirement planning, tax planning and strategizing, and managing investments.

Median Salary (2021): $94,170

Risk Manager

Risk managers help businesses identify and mitigate potential risks, such as financial, legal, or reputational risks. Typically, risk managers work for banks, insurance companies, or other financial institutions.

Median Salary (2021): $95,570

Budget Analysts

Budget analysts are similar to financial planners and managers. They typically work with businesses and organizations to plan for the future by analyzing their current finances and allocating their budgets accordingly.

Median Salary (2021): $79,940

Accountants & Auditors

Accountants and auditors work with businesses, organizations, and individuals to prepare, examine, and analyze financial records. Sometimes, you may need additional certifications to pursue a career in this subfield.

Median Salary (2021): $77,250

How Much Does It Cost to Get a Finance Degree?

The cost of obtaining a finance degree can vary widely depending on the institution and program. Private institutions, for example, are typically substantially more expensive than public schools.

According to the College Board, the average annual tuition and fees at a four-year public institution for the 2022-2023 academic year was $10,950 for in-state students and $28,240 for out-of-state students. A four-year private institution’s average annual tuition and fees was $39,400.

Aside from tuition and fees, students should also consider the cost of textbooks, room and board, transportation, and other expenses.

Students who need help financing their education should fill out the Free Application for Federal Student Aid (FAFSA) and check with their schools for scholarship opportunities.

Students can also save money by completing the first two years of their degrees at a community college before transferring to a four-year university.

Pros & Cons of Majoring in Finance

Earning a finance degree can be very rewarding, but that doesn’t mean it’s necessarily the right choice for everyone.

Here are some of the pros and cons of getting a finance degree.

Pros of getting a finance degree

  1. High earning potential: Many jobs in finance offer high salaries and growth potential, making it a lucrative career choice.
  2. Diverse career opportunities: With a finance degree, you can work in various roles and industries, from investment banking to risk management to financial planning.
  3. Develop valuable skills: A finance degree can help you develop skills such as critical thinking, problem-solving, and financial analysis, which can be applied to a wide range of careers.
  4. Job security: Finance is a stable and growing field, meaning there are always opportunities for skilled professionals.

Cons of getting a finance degree

  1. Competitive industry: The finance industry is highly competitive, and job openings can be limited in some areas.
  2. Long hours: Many finance jobs require long hours, particularly in investment banking and other high-pressure roles.
  3. Stressful work environment: The finance industry can be stressful, particularly during economic uncertainty or market volatility.
  4. Cost of education: Obtaining a finance degree can be expensive, particularly if you attend a private institution or pursue a graduate degree.

How to Find the Best Finance Program for You

If you’re considering a finance degree, it’s important to research and find a program that meets your needs and goals. Here are a few tips to help you get started:

  • Research different programs: Look for finance programs that offer courses and opportunities that align with your interests and career goals.
  • Check accreditation: Ensure that the program you’re considering is accredited by a reputable organization, such as the Association to Advance Collegiate Schools of Business (AACSB).
  • Consider location and cost: Consider whether you want to attend a school close to home or relocate, and consider the cost of tuition, fees, and living expenses.
  • Look for networking opportunities: Consider programs that offer networking events, internships, and other opportunities to connect with professionals in the finance industry.
  • Talk to current students and alumni: Reach out to current students and alumni to get their perspective on the program and their experience in the finance industry.

A finance degree can be a valuable investment in your future, providing a solid foundation for a career in finance or related fields. However, weighing the pros and cons and researching to ensure that a finance degree is the right choice for you is important.

Interested in another degree instead?

Learn more about online degrees, their start dates, transferring credits, availability of financial aid, and more by contacting the universities below.

Is a Finance Degree Worth It? - Intelligent (2024)

FAQs

Does 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 finance a respectable degree? ›

Work for a wide range of employers.

A minimum of a bachelor's degree is required for nearly all finance professions. Whether you want to work on Wall Street, for the SEC, or a financial planning consultancy, a finance degree will give you the foundational knowledge you need to start your career.

What are the cons of finance major? ›

The median annual wage for business and financial occupations is $46,310 higher than the median annual wage for all occupations. Drawbacks of a career in finance can include high stress, long working hours, continuing education requirements, and, in some cases, limited job stability.

Is a finance degree worth it in 2024? ›

While the financial industry is traditionally associated with high wage earners, making it into the top three paying industries of 2024, there are 10 specific finance careers or jobs that hold significant salary potential and are showing promising signs of growth and industry demand.

Is finance hard if you're bad at math? ›

Believe it or not, mastery of advanced math skills is not necessary to have a career in finance. With today's technology, all math-related tasks can be done by computers and calculators. That said, there are some basic math skills that would certainly make you a better candidate in the finance industry.

Is finance a tough major? ›

Finance degrees are generally considered to be challenging.

Is finance a smart major? ›

A finance degree is a good way to earn yourself a successful job and build a career. By getting such a degree, you can enter the finance world and grow steadily within the industry. However, it's a “high-stakes” career, given that no one will trust their finances easily to just anybody.

What type of person should major in finance? ›

People who choose to major in finance are interested in numbers, financial markets, and finding ways to make money. They tend to be natural problem-solvers who like setting goals and researching ways to reach them.

Is it hard to get a job in finance? ›

You don't need an MBA to work in finance, but the field is highly competitive, especially at the entry-level. Internships offer experience, exposure, and a tryout for a full-time gig.

Does finance major have a future? ›

The U.S. Bureau of Labor Statistics (BLS) projects that business and finance jobs will be in demand from 2022 to 2032, with 911,400 openings on average each year. Certain roles within finance, like financial examiner, are expected to grow over six times faster than the rate for all occupations nationwide.

Is finance a happy major? ›

Overall, finance students rate their satisfaction with their degree a 3.1 out of 5.

Is it better to major in finance or accounting? ›

That said, the average starting salary is slightly higher for finance vs accounting degrees. In 2023, the National Association of Colleges and Employers (NACE)1 reported that the medium starting salary for finance majors was $61,456, while the medium starting salary for accounting majors was $53,444.

Who gets paid most in finance? ›

Top 5 Highest Paying Jobs in Finance
  • Chief financial officer (CFO)
  • Investment banking.
  • Hedge fund manager.
  • Private equity associate.
  • Actuary.
Feb 6, 2024

What is the highest paid finance major? ›

8 Highest Paying Finance Degree Jobs
  • Financial Manager. Salary Potential: $208,000. ...
  • Personal Financial Advisor. Salary Potential: $208,000. ...
  • Securities, Commodities, and Financial Sales Agents. Salary Potential: $208,000. ...
  • Actuaries. Salary Potential: $186,110. ...
  • Financial Analyst. ...
  • Accountant/Auditor. ...
  • Budget Analyst. ...
  • Cost Estimator.

Is finance a lot of math? ›

One thing to consider when choosing to study finance is that much of what you study during your degree program will include a mix of economics and accounting, which is naturally going to require at least some math, so if you absolutely detest math, then this may not be the right degree for you.

Is finance degree better than accounting? ›

That said, the average starting salary is slightly higher for finance vs accounting degrees. In 2023, the National Association of Colleges and Employers (NACE)1 reported that the medium starting salary for finance majors was $61,456, while the medium starting salary for accounting majors was $53,444.

Is finance major a lot of math? ›

One thing to consider when choosing to study finance is that much of what you study during your degree program will include a mix of economics and accounting, which is naturally going to require at least some math, so if you absolutely detest math, then this may not be the right degree for you.

Is finance harder than accounting? ›

While both finance and accounting can be difficult majors, accounting is considered more difficult because it requires more discipline and a lot of math. Accounting is more complex because it relies on precise sets of arithmetic principles.

What is the most useful business major? ›

Most in-demand business majors
  • Finance.
  • Accounting.
  • Business administration/management.
  • Logistics/supply chain.
  • Management information systems.
  • Marketing.
Jan 24, 2024

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