Finance is an appealing option to opt for students, but its perception of being a hard subject makes it difficult for them to choose. Finance opens a wide range of diverse jobs. These jobs are more often lucrative and provide the employee with a promising career path.
One can be an analyst of financial matters, a Credit Analyst, a manager of investor relations, and much more. For a person who is good with numbers and loves playing with them, Finance can be a great option.
Although Finance can provide a promising career, people are sometimes hesitant to opt for it. It is due to the perception of Finance being a hard major. This perception is somewhat true and somewhat not. Finance is typically a moderate subject to study and apply.
People normally compare it with Marketing, Human Resource Management, and Business studies, which makes Finance a harder subject. But compared to other subjects like Engineering and Economics, Finance tends to be a slightly easier major to opt for.
Why opt for Finance as a major?
According to a report published by the Bureau of Labor Statistics, jobs in Finance have been growing since their inception and will continue to grow. It means that you will have quite a number of opportunities in this field.
Moreover, the job you will be performing in any company will be specialized. Not anyone can perform the work that you would be performing. It requires in-depth knowledge of financial terms and the methods to deduce these terms. For this, a major in Finance is what you require.
Is Finance a Good Major?
Finance is a much-recommended major, as it opens you to many jobs. You can become a Financial Analyst, Investor Relations Manager, and much more. If you are mathematically detailed-oriented and like playing with numbers, this degree will prove to be a good major for you.
You will thoroughly enjoy the process and the courses you would study under it. Finance is also considered to be the top-paying major which makes it a famous field for students to choose from.
If your passion is to work as or in any of the jobs shared in this article, a major in Finance is what you need.
Let’s compare different options of study with Finance.
Choosing Finance over Business Administration
Business Administration is an easier subject to study than Finance, but it has its own pros and cons.
Although many people perceive that Business Administration will make them more competent, it involves a number of subjects and covers almost all the major functions pertaining to any business.
But, the same advantage with business administration can be its disadvantage. Through this degree, you won’t be able to specialize in one aspect of the business. However, majoring in Finance will give you a specialized field to work in any company, eventually providing you with a high growth rate.
Finance major jobs
A major in Finance can offer you a wide variety of jobs. You can be a Financial Planner, Financial Analyst, Budget Analyst, Accountant, and so on. You can even be an attorney. There are many more other jobs like credit analyst or investor relations manager.
Finance is a field of business studies that is required in almost every company. So, you would be getting a lot of high-paying opportunities to excel in your skills and knowledge.
Is Finance a hard major?
Despite being a good major, many people do not opt for it due to their perception of Finance being a hard major. Now, the question is, why is Finance so hard, or is it perceived to be? Let’s discuss:
To straightforwardly answer the question, Finance is moderately hard. It is neither easy nor tough, depending on one’s aptitude. Some students find it tough to handle all the mathematical complications, but it can become easier through increased focus and improved attention.
Finance does not merely deal with money and the stock market. It involves much more. The students of Finance also have to study subjects like business, macroeconomics, microeconomics, accounting, and many other minor courses. This makes some students find this major a tricky one.
Finance is harder than engineering.
Compared with engineering, Finance is the easier one. Engineering involves complex mathematics and in-depth study of Physics as well.
That is why it is considered to be one of the toughest degrees in the world. It would help if you remembered all the rules to answer the questions, along with common sense logically.
Finance is harder than accounting.
Accounting acts as a gateway to Finance. Most students think that accounting is harder than Finance. The increased involvement of mathematics in accounting is probably the reason behind it.
Most people think that the jobs availed by those who major in Finance and those who major in Accounting are the same.
That’s precisely not true. A career in Finance provides you with mobility as a manager or analyst, saving you from locking up in a narrow endeavor.
Finance is harder than economics.
Economics is perceived to be slightly more complicated than Finance. This is because of an increased level of analysis and mathematics involved in economics. Moreover, this mathematics and analysis are applied to complex scenarios, which ultimately makes the major of economics a tough one.
Finance has proved to be a good major for many in terms of study as well as in terms of job scope. Compared to other majors like Engineering, Accounting, and Economics, Finance is easier to study and understand. The jobs available for Finance majors are diverse and wide in number.
One can choose to be a Financial Analyst, Budget Analyst, manage investors’ relations, and much more. It opens a wide scope for the person, rather than narrowing his endeavors. Most people do not opt for it, considering it a hard major.
That’s quite true to some extent and quite untrue to some. Finance is easier than some majors and tougher, so it is moderately hard.
Frequently asked questions
Does accounting and finance understanding help in the business?
A basic understanding of accounting and Finance opens your door to business success. It enables you to understand, measure, and perform the different business activities. Hence, it can be an excellent option if you want to succeed in the business. However, an alternative can be to hire an accountant.
Is there any difference between accounting and Finance?
Yes, there is a difference between accounting and Finance. Accounting is about the measurement of business transactions and reporting on performance. On the contrary, Finance is about managing the financing aspects of the business. It’s more about managing the business and making decisions.
What’s the difference between financial accounting and management accounting?
Financial accounting aims to record and report business performance. External shareholders of the company are more concerned about reports generated by financial accounting. On the other hand, management accounting involves department-level accounting focused on operational/managerial decision-making.
Is it good to opt for professional accounting qualifications?
Professional accounting qualifications like CPA, ACCA, and ICAEW enable you to handle complex and technical accounting scenarios. To qualify for these professional accounting bodies, you need to pass a series of examinations and ensure compliance with practical experience requirements.
What is risk advisory, and is that related to accounting and Finance?
Risk advisory is about identifying potential risks and recommending adequate controls. If you have a comprehensive understanding of the business processes and related accounting, it becomes easier to make recommendations effectively.
Although, there is no direct link between risk advisory and accounting qualification. However, knowledge of accounting and Finance can significantly help provide risk advisory services.
What is Personal Finance?
Personal Finance aims to effectively manage expenses, savings, and investments at a personal level. It’s about how you manage personal funds to achieve return and pre-defined finance goals. Further, it’s focused on how much you allocate for expenses and invest according to your risk appetite.