Is Finance A Good Major In 2024?
Is Finance A Good Major In 2024? | How hard is a finance major? 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 can you do with a finance degree. Not all careers are right for someone with your ambitions and perpetual drive. The world of finance is one field that will take your natural abilities and reward you with an exciting and financially satisfying career.
The finance industry creates high demand for jobs. According to the U.S Bureau of Labor Statistics, finance jobs, such as investment banking, corporate finance, private equity, and asset management, will grow 5% for the next 10 years. This is faster than the average for all jobs. In this article, you will get the different types of finance degrees and jobs, making it easier for you to decide if a finance degree is worth it.
As the finance industry grows, technology advances and the regulatory space gets more complex, there are a growing variety of finance jobs.
Is a Finance Degree Worth It?
Yes, a finance degree is worth it for many students. According to the Bureau of Labor Statistics, business and financial jobs are set to grow at 5% over the next decade, faster than the average for all occupations. Common careers in this field include chief finance officer, financial manager, cost analyst, and investment banker.
Best Jobs With a Finance Degree
1. Personal Financial Advisor
Personal financial advisors help individuals manage their finances and plan for their financial future. They advise and manage everything from investments, insurance and mortgages to college savings, estate plans, and retirement.
2. Financial Analyst
Financial analysts evaluate investment opportunities for businesses and individuals, helping assess the performance of stocks, bonds, and other types of investments. They usually specialize in a specific industry, geographical region, or type of product.
3. Financial Manager
Financial managers create financial reports, manage investment activities, and develop strategies for the long-term financial goals of their organization. With advances in technology, financial managers now focus most of their time on data analysis to advise management on ways to maximize profits.
4. Loan Officer
Loan officers assess, authorize and recommend approval of loan applications for individuals and businesses. They collect and verify all required financial documents and evaluate the information they obtain to determine the applicant’s need for a loan and their ability to pay back the loan.
5. Financial Examiner
Financial examiners ensure financial institutions are in compliance with the laws governing them. They review balance sheets, evaluate the risk level of loans, and assess bank management to make sure risk is properly managed and borrowers are being treated fairly.
How Much Do Finance Majors Make?
Based on the statistics we found, you can expect to make around $62,000 to around $87,000 as a yearly salary (U.S Bureau of Labor Statistics – BLS). This is for an entry-level financial planner, analyst, or investor associate. Your earnings may increase with time, experience, and continued education. To maximize your success in the finance industry, you may consider earning a graduate degree after you enter the financial field.
Is Finance A Good Major?
Yes, finance is a good major if you are mathematically inclined and detail-oriented. Being able to present information and gain client trust can 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.
Reasons Why Finance Is A Good Major & Finance degree
Why Study Finance?
1. 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.
2. Join a popular industry that expects stable growth.
According to the BLS, employment of all business and financial operations occupations is projected to grow 7% percent by 2028, faster than the average for all occupations, adding about 591,800 new jobs.
3. Master skills that prepare you for real-world job responsibilities.
Unlike more general degrees, like business administration, finance teaches you in-demand skills in areas including data analytics, risk management, capital allocation, and investment strategy.
4. Set the stage for getting professional certifications.
Most financial professionals get at least one professional certification. For financial planners, the most common is the Certified Financial Planner (CFP), which sets high ethical and skills standards for these professionals. Financial management professionals may choose to pursue a specialty area of expertise, like the Chartered Financial Analyst (CFA) certification or the Financial Risk Manager (FRM) certification.
Types of Finance Degrees
1. B.S. in Financial Management.
A degree in financial management prepares you to analyze the financial health of financial institutions and businesses, helping them improve financial performance and increase profitability. Professionals with a financial management degree focus in areas like financial analysis and forecasting, portfolio management, cash management, international finance, and risk management.
2. B.S. in Accounting.
A degree in accounting focuses on the accountability side of finance, teaching you the ins-and-outs of financial reporting, taxation, auditing, and financial management.
3. B.S. in Financial Planning
A degree in financial planning prepares you to help individuals and small businesses manage their assets and plan for their financial future. Professionals with a financial planning degree usually become personal financial planners who either holistically manage finances, or specialize in an area like investment strategy, estate planning, retirement savings, healthcare planning or income planning.
What’s the Difference Between Finance Degree vs Accounting Degree?
The difference between accounting and finance has to do with the day-to-day focus for someone working in either field in the finance industry while 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 may plan and project overall growth for the entire company or department.
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 may have a narrow focus but will not be locked into a single endeavor or workflow.
How do I know if finance is for me?
1. You love to learn
You get bored with repetitive tasks that stay the same, week after week. The best jobs you’ve had were marked by their interesting developments, new things to learn and new people to meet. You’re just plain energized when you learn something new, and you’re pretty good at catching on fast. That’s a critical finance trait.
2. You’re a natural problem solver
Finance professionals deal with problem solving on a daily basis, from negotiating a deal to determining the best solution for a client. You’ll stand out above the crowd if you can show your employer you have the critical-thinking skills to handle tricky situations.
3. You work hard
When you have your eyes on a goal, you’re willing to work for it. If that means going the extra mile or thinking outside the box, then you’ll do it. You are tenacious when it comes to completing your mission. That trait is pretty valuable in any industry, but in finance, it’s a must.
4. You have the heart of a teacher
You love to share what you know. Whether it’s training someone in on a job, teaching a nephew to ride his bike or showing your grandma how to use her smartphone—you know how to walk someone through a process. In finance, teaching can be a huge part of the job.
5. You have stellar communication skills
Financial discussions can get complicated. Whether you’re explaining to a client exactly what’s happening with their money or you’re brokering a complex financial deal, you need to have solid communication skills to keep the process moving smoothly.
6. You’re inquisitive
You aren’t just curious about finance. You’re curious about lots of things. Some people walk through their day with their head down, just trying to do their part and go home. But that’s not you—you want to see what’s going on. That is a highly valued trait in the finance industry.
7. You have high emotional intelligence (EQ)
You don’t have a hard time relating to people. Whether it’s your best friend or someone you’ve never met before, you like to understand where people are coming from, and you are pretty good at reading between the lines of what someone is saying.
8. You persist
No one likes setbacks, but instead of getting disheartened, you rise to the challenge. You are willing to work at something for a long time if that’s what success takes. And when it comes to finance, time is often a huge factor in success.
9. You take initiative
You don’t need directives to make yourself useful. Whether you are at work or engaging in a project for fun, you like to look at goals and start working on a way to make those goals happen. Even if you aren’t sure how to do something, you know that getting started is usually more effective than kicking around doing nothing.
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