Is it better to major in finance or economics?
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.
Both finance and economics are excellent choices for someone interested in a career in the financial sector, but they do differ in focus and potential job opportunities. Finance is more practical and focused on the management of money, investments, and financial assets.
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.
If you have an interest in local, national or world affairs and the factors that drive markets, economics might be the major for you. Those who excel in math, research, critical thinking and solving problems with evidence-based solutions might also be a good fit for this field.
Finance degree jobs can provide relatively high pay, stability, opportunities for advancement and consistent demand projections. Careers in finance may also offer flexibility for employees by allowing them to work remotely or in hybrid environments.
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.
A degree in economics can provide a variety of job opportunities in nearly every industry, from local government and the sciences to finance and insurance. While some of these jobs might require additional certifications or education, others are available to those with a bachelor's degree.
No surprise, majoring in engineering and finance yields the biggest paydays five years after graduating college, while majoring in liberal arts or performing arts pays the least.
How much do economists make? The national average salary for economists is $101,813 per year , but the salary you may earn depends on factors like your education, experience level and employer. Some geographical areas also pay economists more than others.
- Economist. ...
- Market Research Analyst. ...
- Financial Analyst. ...
- Actuary. ...
- Business Analyst. ...
- Accountant. ...
- Data Analyst. ...
- Research Assistant.
Why would I major in economics?
Studying economics provides you with the tools to think critically about some of the most important issues facing humanity today, such as economic growth, prosperity, poverty, income inequality, social justice, environmental concerns, globalization, and business cycles just to name a few.
Many economists work in the public sector, helping identify and address economic issues. But many private businesses and nonprofits need economists for their analytical skills to help them better understand their own markets or service areas.
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).
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.
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.
Although introductory economics courses, such as those most college students must complete in the course of their studies, involve little math, an in-depth study of economics requires a rigorous understanding of mathematics, including calculus.
Although economics graduate programs have varying admissions requirements, graduate training in economics is highly mathematical. Most economics PhD programs expect applicants to have had advanced calculus, differential equations, linear algebra, and basic probability theory.
The number of students majoring in economics has been rising even faster at top colleges. At New York University, for example, the number of econ majors has more than doubled in the past 10 years. At nearly 800, it is now the most popular major.
Economists can work in academia, research institutions, government agencies, financial institutions, and consulting firms. Economists are in demand in the finance industry because they can analyze financial data and provide insights into market trends and economic conditions.
If you have an economics degree but have no work experience, you can find entry-level positions at companies that hire recent graduates or a junior position where you work under the supervision of a senior employee.
How do you stand out in economics?
Internships, part-time jobs, or volunteer work in the field of economics can help entry-level economists gain valuable experience and stand out to employers. Furthermore, customizing resumes and cover letters to align with specific job requirements and showcasing relevant skills and experiences can help in this field.
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.
Engineering is the highest-paying college major, with graduates making $65,000-$80,000 immediately after college.
According to the analysis, published by the Federal Reserve Bank of New York, students who majored in liberal arts, performing arts, or theology and religion, had the lowest salaries within five years of graduating college. All three majors made $38,000 early in their careers.
Elon Musk's choice to study Physics and Economics reflected his multidimensional approach to problem-solving and innovation. The combination of a scientific foundation and an understanding of economic principles provided him with a well-rounded education for his future endeavors.
