Why do people major in finance?
Finance students are taught key knowledge that is both broad in scope and in-depth in nature. A finance degree can teach you important topics to potentially enhance your own financial health, such as: Portfolio theory, management and application for business and individual investment decisions.
A career in finance offers rewards such as high salaries, job security, and numerous advancement opportunities. It's also intellectually stimulating and allows you to apply your financial knowledge across various industries, making it both financially and personally fulfilling.
Finance majors learn how to help businesses and individuals make money and spend their money wisely. They may work in general finance, budgeting, investments, funds or several other specialties. Undergraduate finance programs typically take four years to complete.
The job market for a finance major is favorable, with average growth expected in the sector through 2030. The US Bureau of Labor and Statistics (BLS) anticipates the industry will add more than 750,000 jobs during that period [1].
- You have stellar communication skills. Financial discussions can get complicated. ...
- You take initiative. ...
- You're inquisitive. ...
- You work hard. ...
- You have high emotional intelligence (EQ) ...
- You love to learn. ...
- You persist. ...
- You're a natural problem solver.
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.
Is Finance a Hard Major? Finance is a somewhat difficult major. The difficulty with finance comes down to its concepts that students would not have experienced before in their lives, the financial lingo in the field, and the concentration of math in the subject.
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.
Even when you are working with financial models, none of the math is complex. There's addition, subtraction, multiplication, and division… and occasionally built-in Excel functions like IRR, Mean, and Median. You never use calculus or differential equations or even geometry / trigonometry.
Annual Salary | Hourly Wage | |
---|---|---|
Top Earners | $135,000 | $65 |
75th Percentile | $109,000 | $52 |
Average | $92,631 | $45 |
25th Percentile | $75,000 | $36 |
How do I know if finance is for me?
If you are interested in solving problems in creative ways or helping companies to plan how to grow their revenue or maintain profitability, a finance major is right for you. A Bachelor of Science in Finance will help you develop multiple skillsets with a great outlook for success after your graduation.
With these roles, finance is among the good majors that pay well, with professionals able to earn, on average, $76,570, according to the U.S. Bureau of Labor Statistics (2022c). In addition to offering high salaries, a career in finance can also provide personal and social fulfillment.
- Investment banker.
- Hedge fund manager.
- Financial analyst.
- Information technology auditor.
- Financial software developer.
- Private equity associate.
- Chief compliance officer.
- Chief financial officer.
Remember, finance is extremely competitive, so you should do everything you can to differentiate yourself.
Yes, GPA matters! Bulge bracket banks and almost all other investment banks will look at your GPA when applying for a job and you should include it in your resume. Typically banks screen resumes based on GPA and will often remove anyone below 3.5.
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.
📈 According to a study by the Myers-Briggs Company, introverts make up 56.8% of financial professionals, while extroverts make up 43.2%. This means that there are plenty of introverted financial professionals out there who have achieved success in their field.
Financial Manager Positions
These financial management positions include controllers, treasurers, credit managers, cash managers, risk managers and insurance managers. Since each of these positions requires strong analytical skills along with the ability to work independently, introverts tend to make ideal candidates.
- Humanities. ...
- Sports and Exercise Science. ...
- Engineering. ...
- Natural Sciences. ...
- Psychology. ...
- Arts and Design.
What is the Hardest Business Major? The difficulty of a business major depends on a number of factors including natural talents, chosen courses, and school. However, one of the hardest business majors is thought to be Accounting.
What is a good GPA for a finance major?
Anything above a 3.5 is considered good and above a 3.7 is impressive. Keep in mind that your GPA doesn't make up your entire resume. Strong internships or extracurricular activities can make up for a sub-3.5 GPA, but they better be damn good and you shouldn't count on them making up for your GPA.
- Business Administration/Management: This major typically covers a wide range of business topics, including management, marketing, finance, and human resources. ...
- Marketing: Marketing majors learn about advertising, market research, and consumer behavior.
Applying for entry-level finance jobs can be overwhelmingly competitive just because of the number of people graduating with finance degrees yearly, and if you're able to, getting a bachelor's degree will help you stand out against the competition.
- Most stressful job in finance : Investment Banker (M&A or capital markets professional) ...
- Second most stressful job in finance : Trader. ...
- Third most stressful job in finance : Risk management & Compliance.
However, this is just a simple misperception that many students have in the finance study. It is true that knowing math is essential because finance actually is about studying the flow of money. However, that doesn't mean you need a high level of mathematics skills like Calculus.