Is Finance a Good Major?
Is Finance a good major? We’re comparing it to other business majors and looking at what a bachelor’s degree in finance can do and earn in their career.
If you are considering a career in finance as a financial manager, budget analyst, or one of the other jobs for finance majors, you may be wondering: what goes into a finance degree, and what is the job outlook for me once I graduate? What can you do with a finance degree?
The Bureau of Labor Statistics shows that the field is growing rapidly, and finance professionals enjoy fairly high salaries.
Why Major in Finance?
According to the Bureau of Labor Statistics, finance degree jobs will grow 16% from 2018 until 2028. This is far above the average 7% for all business jobs. No matter your job title or specialty, a finance degree can connect you with outstanding job opportunities and job security.
The job security is partly because finance is such a specialized, narrow field. Graduates can perform many different functions, but each requires a laser focus on the tasks and procedures you will learn in school.
As you advance at a company, your value becomes greater because your level of specialized knowledge also grows.
If you already have a business background, working as a financial analyst could be a perfect fit. Most employers want you to have at least 5 years of experience in a related field as well as your degree.
Why Finance Instead of Other Business Majors?
Why study finance instead of, say, business administration or accounting?
Since business administrators have so many different functions, they are pulled in different directions during a workday. With financial degrees and jobs, you can focus on creating budget reports, analyzing spending, advising clients, or managing the finances of a department or corporation.
If you major in finance, you will also be entering a field that has a much higher growth rate than many other business and related careers.
Accounting is often a gateway for those who want a career in finance. But the advantage over being an analyst or manager, rather than an accountant, is more career mobility. You will have a narrow focus but will not be locked into a single endeavor or workflow.
Why Study Finance?
Majoring in finance will allow you to compete for a variety of jobs. Here are a few descriptions of the most pertinent ones.
Personal Financial Planning
In this industry, you would work for a large bank or investment firm. You will advise clients of setting up and maintaining their portfolios, including choosing new investment vehicles. Financial planners should have fantastic communication and customer service skills. This helps gain the trust of clients.
A financial analyst typically works for a large corporation. There are also opportunities in the nonprofit and government sectors.
An analyst looks at how money is being spent and helps allocate resources to keep the company viable. Analysts will look at payroll, marketing, requisitioning, and sales to determine the best courses of action.
Another option for those majoring in finance is to become an investor relations associate. In this role, you will prepare financial documents and data about your company. You then present this information to potential investors, media outlets, and analysts within your organization.
Finance Major Jobs
In addition to a bachelor’s degree, there are options for graduate work in the field of finance. Getting a master’s or doctorate in finance will open new possibilities for your career.
A master’s degree will teach you specific methods for things like investment projections and financial planning or analysis. In some areas, you can also teach with a master’s degree. A master’s degree typically has a focus, so you can focus on a specific area of finance that interests you.
A master’s degree also sets you up for management at many corporations and other settings. It will distinguish you from those in the finance field who only have a bachelor’s degree.
Doctoral degrees in finance add even more specialization to your experience. You will be able to go into an instructional or research sector. You will also be qualified for any job in the financial industry with a doctorate.
Finance Major Salary
Here’s a comparison of four of the careers you can look into as a finance major.
|Investor Relations Associate||$65,000/year|
These numbers are averages, taken from the Bureau of Labor Statistics website. They are meant to act as a guide for you to see what jobs you can get with a finance degree. Your location and company may cause deviations from these numbers.
Is Finance a Good Degree?
Yes, finance is a good degree if you are mathematically inclined and detail-oriented. Being able to present information and gain client trust will also help in your career. Before you major in finance, be honest with yourself about whether you have these qualities or how you might develop them.
One positive aspect of your finance degree is the number of entry-level jobs it qualifies you for. You can work as a planner, analyst, or investment associate with no training beyond your degree and related experience. These jobs pay well and present opportunities for growth.
Remember that you usually need experience in finance to get hired for an entry-level position. Look for internships that will give you some of this experience. The more you have, the better situated you will be for a career in finance after you finish school.
Is Finance a Good Major?
Yes, finance is a good major because of the high job growth rate of 16% and the relatively high salaries you can make. Finance majors make between $65,000 and $89,000 on average
If you want to work in the business field as a specialized financial advisor or analyst, this is the college major for you.
Questions Related to Earning Your Finance Degree
Here are our answers to a few more questions you might have.
Finance Degree vs Accounting Degree – What’s the Difference?
The difference between accounting and finance has to do with the day-to-day focus for someone working in either field.
Accountants are concerned with revenue flowing in and out of the business on each day of operation. Working in finance means you have a much broader view and set of tasks. You can plan and project overall growth for the entire company or department.
Is Finance a Hard Major?
No college degree is “easy.” They all require several years of sustained effort and the ability to learn quickly. You must also show mastery of everything you learn. You may be doing all this while also taking care of a family and working a different job.
A degree in finance becomes more feasible if you enjoy and excel at math. You must also be able to analyze large amounts of data, then present your findings in a way colleagues and stakeholders will understand. Attention to detail is vital if you are considering a career in the financial sector.
How Much Do Finance Majors Make?
Based on the statistics we found, you can expect to make around $70,000 to around $100,000 as a yearly salary. This is for an entry-level financial planner, analyst, or investor associate.
Your earning will increase with time, experience, and continued education. To maximize your success, you should consider earning a graduate degree after you enter the financial field.
Is a Finance Degree Worth It?
Yes, a finance degree is worth it. After graduation, you could earn $65,000-$89,000 per year.
A finance degree can provide you a rewarding career experience. If you enjoy math, have good attention to detail, and can interact with people effectively, we encourage you to apply to a distance-learning or other program to set you on the path of working in the financial services field.