Is a Finance Degree Worth It? Everything You Need to Know (2024)

If you’re wondering if a finance degree is worth it, chances are you’re doing your homework before you make the commitment. Good idea.

Earning a degree is a big investment — one that takes time, effort, and money. So it’s always best to do some research before taking the plunge.

A finance degree can seem glamorous, with all the Hollywood movies about Wall Street. But majoring in finance is a huge commitment and there are important issues to consider before diving in.

So, is a finance major worth it? Let’s go over everything you need to know before committing to a finance degree.

Is a Finance Degree Worth It? Everything You Need to Know (1)

Source: Pixabay

How Much Money Can You Earn in Finance?

Let’s get real. The issue of income is a very important one and a huge deciding factor for many people when making a decision about what degree and career to pursue. So let’s see what salaries are like according to the different positions in the finance market.

Average salaries in finance

Did you know that the average salary for a finance major in the US is $60,000? Apparently, it’s one of the top most valuable college degrees with high entry-level wages outside of the tech world. That’s not bad at all! And for those living in the UK, the average salary is £46,735. Reed is a website that has all the finance jobs and their salaries as well as number of jobs in the UK.

Payscale can show you average salaries for all jobs in almost any country. Wherever you live, you can find out what the finance job salaries are like in your country. They include minimum, maximum, and average wages. So it’s a valuable website to check out!

What about starting salary?

According to Study.com, the average starting salary for finance majors is very dependant on the position and the employer. The National Association of Colleges and Employers (NACE) reported that the average starting salary for finance majors was $55,400 in 2014.

What are common finance jobs and how much can you earn?

Here’s a list of 5 common finance jobs and their respective average salaries (in US dollars), according to Payscale:

  • Financial Analyst – $55,170
  • Business Consultant – $72,755
  • Financial Advisor – $55,500
  • Finance Manager – $87, 508
  • Product Manager – $64,031

Glassdoor is another great site that lets you not just search for jobs, but also see how much they pay. It’s worth checking them out too.

What’s the Job Market Like?

Another important thing to consider before choosing a degree is the job market in the career that you are interested in. The expected salaries may be appealing, but what if the jobs are hard to come by? It’s always a good idea to do some research and see what the market is like. Here are some things to think about:

Is a Finance Degree Worth It? Everything You Need to Know (2)

Source: Pixabay

The different finance jobs available

The finance world is vast and has many different careers within it. According to Investopedia, once you get into the finance arena, there’s lots of room to progress and find your specialization. Some of the most common jobs that a finance degree can get you are: Treasurer, Financial Adviser, Financial Analyst, Auditor, Budget Analyst, Loan Officer, Buyer, Accountants, Collectors, Bank Tellers. Those are just ten. There are many more. So basically, a finance degree can offer you a lot of options!

Is it a competitive market?

The answer to this question depends on the certain finance job in question. Investopedia has a list of the top four most competitive financial careers, which are Controllers, Tax Managers, Accountants, and Analysts. Apparently, financial employers look less at your educational background and more at your real-world experience. So that means that the more you work in finance, the more experience you gain, and eventually the more valuable you will become to a potential employer. Like in most careers, you almost never start in your dream job. Climbing up the ladder is a big part of building a career and the financial world is no different.

The good news is that considering how vast the job market is with all the available financial jobs, finding a job doesn’t seem like it would be a problem. You’ll just need to be realistic and patient. But at least the starting salaries are high!

Opportunities to work abroad or to start your own business

Nowadays, with almost everything going global, there are more opportunities to work abroad. More companies are investing in outsourcing, meaning they hire people from abroad to provide their financial services. According to Investopedia, the finance jobs are no longer only in New York and London. Rather, they are moving to all the countries that have growth potential, like Asia, India, and the Middle East.

Remember, you must have a working permit to work overseas. It’s not always easy and may take time. But for the right position, it is definitely worth looking into!

Not only is working abroad an advantage for finance majors, but so is starting your own business. If you have the entrepreneurial drive in you, a finance degree can be an advantage. Learning about money and how to work with money is highly beneficial for starting and owning your own business. Think about it: businesses exist in order to make money! So learning about money seems like a good fit, doesn’t it?

Looking for work

We definitely recommend checking out job sites and see which finance job interests you most and what’s being offered out there. Websites like Glassdoor and Indeed are just two out of many job search sites to look at.

What Education Is Needed? Is a BA Enough?

The issue of credentials is needless to say a relevant one. Yes, you are considering a degree in finance. But which degree is mandatory? And do you need to continue on to do a masters? These are some questions (and answers) to help you figure it out.

Is a BA mandatory?

It’s probably not going to come as a shock to you that a BA or undergraduate degree is the minimum requirement to get a job in the financial field. But a finance degree isn’t the only degree to choose from. There are also degrees in business, accounting, management, and economics. And it might help you to know that a Bachelor of Arts in Finance and a Bachelor of Science in Accounting are very similar in their courses, at least in the beginning. And remember, most colleges give you the option to change your major within a certain amount of time. So if you decide to change routes, it’s possible.

There are options, however, that are more directed to specific careers. For instance, accounting, banking, financial services (financial and investment banking), wealth management, financial planning, bookkeeping, taxes, and treasury are all financial industries that have specialized courses.

Do you need a masters?

Continuing your education is always going to benefit you and the career you are looking to progress in. For example if you want that Wall Street kind of career, you’re going to need an MBA.

What about the costs?

For some people the prospect of getting one seems like a distant dream due to the high costs. There are solutions to this, the University of the People offers a tuition-free MBA program which costs substantial less than traditional universities and the fact it is online makes it flexible to work while you study. This is a terrific option for those who want to get ahead in the finance industry and may not have the spare cash to pay for tuition. Keep your day job and get an MBA part-time!

As a general rule of thumb, always look online for the job you want and see what qualifications are listed as requirements. It’s the best way to get real and up-to-date answers.

What Is the Real Day-to-day Life in a Finance Career?

Sometimes people overlook the reality of a job. And more often than not, the job title is a little bit deceiving and even fancier than it really is. It doesn’t always represent the day-to-day reality of the work entailed. Let’s take a look at some popular finance jobs and what their daily tasks are like.

Is a Finance Degree Worth It? Everything You Need to Know (3)

Source: Pixabay

Real job descriptions and daily tasks

Of course, every job has its own description and duties. But we can show you what the real-life work is for a few common finance jobs. For example, are you interested in being a Financial Analyst? Here’s a look into a day in the life of a Financial Analyst, which turns out to be a long one. How about the daily life of an accountant? There’s an interview with an Accountant who talks about what a real day looks like in his job. And if you’re wondering what a Financial Planner does all day, take a look into one professional’s daily work.

We recommend that you search online for the job you’re interested in and type in “a day in the life of…”. You’d be surprised how much information is out there. The world is at your fingertips!

Some cool finance jobs you may have never heard about!

Did you know that you can become a Green Accountant? There is a whole branch of environmental accounting that may not be at the top of the list of most common finance careers, but it is definitely an interesting and relevant one today. Some other interesting finance careers include: Entertainment Accountant, CIA Economic Analyst, and FBI Forensic Accountant. Sounds pretty cool!

What’s Better: a Finance Degree or an Accounting Degree?

There are certain majors that are similar to each other, and it’s worth looking into what the difference between them is. Sometimes a degree that’s related to what you want is actually more suited to you thank you might have thought. And wouldn’t it be a shame to not know about it and potentially miss out on a better option? It also might even be possible to take a joint accounting and finance degree, but this depends on the college you register to.

What’s the difference between accounting and finance degrees?

The bottom line is that accounting is quite narrow and finance is more versatile, with careers spanning different industries like business, economics, and banking. Aside from career potential, there’s a difference in course content, qualifications, and skills gained.

Top Universities put together an in-depth comparison of both finance and accounting degrees. If you’re debating between the two, check it out and see what is more appealing to you.

If you’re wondering which degree offers a better salary, they happen to be quite comparable. Finance majors have only a slightly higher starting salary ($55,609) than accounting majors ($54,838). So maybe the issue of salary won’t be much of a deciding factor there.

Do You Need to Be a Math Wizard to Learn Finance?

Finance and math seem to go hand in hand. But does that mean that you have to be a math wizard to succeed in a finance job? What if math isn’t your strong point? Does this mean that you can’t pursue a career in finance? It’s normal to have these thoughts and it’s good to ask these kind of questions before you get into it.

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. And considering how competitive the job market can be sometimes, the more skills you have the better, math included.

Some of the main math-related skills that the financial industry requires are: mental arithmetic (“fast math”), algebra, trigonometry, and statistics and probability. A basic understanding of these skills should be good enough and can qualify you for most finance jobs.

Helpful Qualities and Skills to Have in the Finance World

Certain careers are well suited to certain personality types. Just as some careers are not a good fit to certain personalities. But don’t worry, not all skills come naturally. You can always learn new skills or improve on rusty ones. So, what skills are good to have to succeed in finance?

Is a Finance Degree Worth It? Everything You Need to Know (4)

Source: Pixabay

Soft skills

According to Monster.ca, there are a number of skills that employers in the finance industry look for. Soft skills like organization, multi-tasking, problem-solving, and communication are valuable to employers. In management positions, for instance, skills such as attention to detail, leadership, and confidentiality are highly valued. For accountants, a report from 2016 stated that a few skills were considered “important” or “extremely important”, such as communication (88% of employers), problem-solving (84% of employers), and time-management (84% of employers).

Soft skills can be learned and practiced. Working on these skills can be done at your current job, or in your studies. You can also volunteer at an organization or take a class. The point is that soft skills are highly valued and are definitely possible to improve on. And think about it this way: if you have all the other credentials, working on your soft skills should be a piece of cake. And it’s free!

Wrapping Up

So there you go. Everything you need to know to help you make the decision of whether or not to earn a finance degree. We hope it was helpful and gave you some insights. And from the looks of it, a degree in finance does seem worth it. There are lots of opportunities from the get-go as well as throughout your career, and the salaries are relatively high. If you’re up for the challenge, we’re sure you’ll succeed. Good luck!

Is a Finance Degree Worth It? Everything You Need to Know (2024)

FAQs

Is a Finance Degree Worth It? Everything You Need to Know? ›

For many professionals, a bachelor's degree in finance is worth it because it is the starting point for a successful and lifelong career. By analyzing data, studying financial markets, and assessing risks, finance professionals help individuals and organizations stay within their budgets and earn competitive salaries.

Is getting 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.

What do you need to know for a finance degree? ›

Finance majors can typically expect to take courses in:
  • Accounting.
  • Economics.
  • Statistics.
  • Capital markets.
  • Investments and investment analysis.
  • Asset pricing and portfolio analysis.
  • Business and finance ethics.
  • Business law.
Oct 3, 2023

What are the cons of a finance degree? ›

They can include high stress, big responsibility, long working hours, continuing education requirements, and, in some cases, a lack of job security—the finance industry is generally quite cyclical.

How difficult is a degree in finance? ›

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.

Is finance math heavy? ›

One thing that's for sure is the high amount of math you will need to study. Finance is a mathematical discipline, so if you aren't as comfortable with math as with other ways of thinking, you may find it more challenging. Additionally, finance also makes use of a vast, highly specific vocabulary.

Can I do finance if I'm 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.

What job pays the most with a finance degree? ›

The top 5 highest paying jobs in finance are investment banking, hedge fund management, CFO roles, private equity, and actuarial positions. These careers typically offer substantial salaries and the potential for significant bonuses.

How much math is in a finance degree? ›

While each program will vary slightly, students earning a finance degree can expect to take a sizable amount of math classes. Finance degrees will often cover more basic mathematical concepts such as algebra and statistics, as well as more industry-specific math courses such as probability and business mathematics.

What is the best degree to get into finance? ›

5 Majors to Consider for a Career in Finance
  • Finance. Finance majors learn how to make financial decisions for organizations. ...
  • Economics. Economics majors learn to decode the systems behind what can often appear impossible to understand. ...
  • Business Administration and Management. ...
  • Accounting. ...
  • International Business.

Are finance majors oversaturated? ›

At number one we have finance. Given that this is one of the majors with the highest upside. while also being incredibly easy academic wise and extremely popular, you betcha this one is oversaturated and super competitive.

Is finance a stable career? ›

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.

What is the hardest job in finance? ›

One of the most difficult jobs in Finance is to be the CFO of a PE firm or a PE-backed company. According to a Big 4 firm's survey, turnover of CFOs in PE and PE-backed companies is notoriously high, reaching 80% in less than five years; half of whom are gone within three years.

Is finance harder than accounting? ›

Is finance harder than accounting? Accounting relies on precise arithmetic principles, making it more complex, whereas finance requires a grasp of economics and accounting without as much mathematical detail.

What's the easiest business major? ›

5 Easiest Business Degrees
  • Bachelor of Science in Business Administration (BSBA) ...
  • Bachelor of Arts in Marketing. ...
  • Bachelor of Science in Entrepreneurship. ...
  • Bachelor of Arts in Human Resources Management. ...
  • Bachelor of Science in Hospitality Management.

What's the easiest degree to get? ›

10 Easiest Bachelor's Degrees of 2024
  1. Business. Interested in an easy major with many career options? ...
  2. Communications. As a communications major, you'll study mass media, public relations, and journalism. ...
  3. Criminal Justice. ...
  4. Education. ...
  5. English. ...
  6. General Studies. ...
  7. Health Science. ...
  8. Liberal Arts.

Do finance degrees make a lot of money? ›

The average starting salary for finance majors is $55,000, and the average mid-career salary is $110,000.

Is finance a well paying career? ›

The finance industry offers some of the highest paying entry-level jobs. And top-paying entry-level finance positions currently in high demand. There are a lot of different paths you can take with a finance degree, so it's crucial to learn about your options and explore various career opportunities.

Are people with finance degrees happy? ›

How satisfied are finance students compared to other degrees? Overall, finance students rate their satisfaction with their degree a 3.1 out of 5. This is low compared to other degrees which average a rating of 3.28 across all degrees.

References

Top Articles
Latest Posts
Recommended Articles
Article information

Author: Lidia Grady

Last Updated:

Views: 5635

Rating: 4.4 / 5 (45 voted)

Reviews: 92% of readers found this page helpful

Author information

Name: Lidia Grady

Birthday: 1992-01-22

Address: Suite 493 356 Dale Fall, New Wanda, RI 52485

Phone: +29914464387516

Job: Customer Engineer

Hobby: Cryptography, Writing, Dowsing, Stand-up comedy, Calligraphy, Web surfing, Ghost hunting

Introduction: My name is Lidia Grady, I am a thankful, fine, glamorous, lucky, lively, pleasant, shiny person who loves writing and wants to share my knowledge and understanding with you.