The financial services industry employs millions of graduates annually. These employees consist of people from diverse academic backgrounds and fields of study. However, a factor common to them is having one of the best majors for finance as part of their qualifications. This requirement equips them with the know-how to handle numbers and complex figures.
Prospective finance students who are seeking the best college majors for finance will find this article useful. We’ll discuss how to choose a major for finance and show you how to identify the best finance jobs to enjoy career advancement in the financial industry.
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What Major Is the Best for Finance?
Accounting is the best major for finance because this subject is mandatory for all financial management and banking roles. An accounting major is a staple for finance jobs that require employees to handle many numbers or conduct analyses. Employers also make it a requisite for specialized roles in the capital market.
How to Choose a Major for Finance
- Consider your career goals. It’s advisable to consider your long-term career goals when pursuing a finance degree. The field of finance is broad so choosing a major will largely depend on the niche where you want to specialize.
- Identify your skills and interests. You should choose a major that aligns with your skills and interests. Ensure that you are equipped for the demands of a four-year degree program and have a flair for math and statistics. Since your potential jobs may involve handling financial records, proficiency in calculations is essential.
- Evaluate the relevance of the major in the market. While the financial markets constantly need employees with a degree in finance, some of the majors will not be relevant in the long run.
- Research the finance faculty of your college. Inquiring about your college’s finance faculty and environment can influence your choices. It is essential to get an idea of how taxing and demanding each field is and the support you’ll get from the faculty, so you can gauge whether or not you can cope in such a major.
- Consider the salaries of finance majors. Students typically choose an undergraduate degree based on the potential earnings of employees in that career path. Researching about the best-paying jobs in finance can help you decide which major best aligns with your dream earnings.
What Are the Best Majors for Finance?
- Financial Technology | Average Salary: $90,000
- Financial Engineering | Average Salary: $85,000
- Banking | Average Salary: $76,000
- Economics | Average Salary: $76,000
- Finance | Average Salary: $75,000
- Accounting | Average Salary: $74,000
- Statistics | Average Salary: $74,000
- Business Administration | Average Salary: $73,000
- International Business | Average Salary: $73,000
- Business Law | Average Salary: $69,000
Best College Majors for Finance: Explained
Financial Technology | Average Salary: $90,000
This major undoubtedly allows you a spot to benefit from this lucrative field. Financial technology (FinTech) has become competitive as various financial institutions now leverage technology to automate tasks and provide better financial services.
Financial Engineering | Average Salary: $85,000
This major employs a highly quantitative, tech, and data-driven approach to banking and finance. Students will learn how to apply a technical approach to their regular finance courses. A Master’s in Financial Engineering is an ideal degree for anyone who wants to work in quantitative research or in designing new products in the finance sector.
Banking | Average Salary: $76,000
Students can study banking as a degree or pursue a finance degree with a banking concentration. This major fuses finance and business topics but with added focus on banking terminologies and concepts, financial regulations, compliance, and risk management. It prepares students for both retail and commercial banking jobs.
Economics | Average Salary: $76,000
Economists are indispensable in the finance industry. Their expertise in manipulating banking levers, such as reserved ratios and interest rates, is an excellent method of controlling inflation and managing the growth of an economy. This major equips students for all sorts of financial analysis roles.
Finance | Average Salary: $75,000
While banking is the most common answer to those wondering what they can do with a finance degree, a finance major is much more versatile than that. Financial planning, credit analysis, and other specialized roles in the capital market are all examples of lucrative jobs that you can enjoy with a finance degree.
Accounting | Average Salary: $74,000
Students in accounting learn how to create, maintain, and audit accurate financial systems for a business or organization. They understand the theoretical aspects of accounting for analyzing an individual’s or organization’s financial position. Taxation, financial reporting, auditing, and risk management roles are ideal for students who major in accounting.
Statistics | Average Salary: $74,000
A statistics major’s inclination toward math and research is valuable in investment banking. Statistics knowledge helps students to collate and break down complex information to aid business decisions and public policies. They can also use data to solve real-life problems.
Business Administration | Average Salary: $73,000
Business administration teaches students how to understand all sorts of client businesses. Their roles range from sales, trading, and advisory to leadership and management. For those interested in a higher degree, MBAs offer unparalleled networking opportunities and allow professionals to enter the banking sector through various management trainee programs.
International Business | Average Salary: $73,000
This major combines courses in foreign languages, business, and economics to qualify students for roles in global corporations. Students can also adapt business concepts to international financial, legal, and economic systems. According to the US Bureau of Labor Statistics, employment in this sector is projected to grow eight percent from 2020 to 2030.
Business Law | Average Salary: $69,000
This major teaches you how to apply legal principles to private business transactions. Since banking services require a lot of legal support, having a major in corporate law can save your company a lot of expenses from contracting independent legal firms. This makes you an invaluable member of the team should you decide to pursue this major.
What Are the Best Careers in Finance?
With a major in finance, you can get jobs such as financial manager, real estate broker, financial planner, and loan officer. A degree in finance can get you started with an entry-level role in finance and allow you to progress to more advanced roles. Below, we give a quick look at the best careers in finance.
Top 10 Best Careers in Finance
The finance industry is famous for dealing out six or seven-figure annual wages to employees in advanced roles. Compared to other professions, even entry-level workers with a degree in finance can enjoy relatively fair wages. Below is a list of the best jobs you can get with a finance major.
Financial Manager
- Average Salary: $131,710
- Job Outlook: 17% growth from 2020 to 2030
- Required Education: Bachelor’s degree
Financial managers are in charge of all financial functions of an organization. They create financial reports, direct investment activities, and develop the long-term financial plans of a company. A person typically needs a Bachelor’s Degree in Business or a related field and an experience in an economic occupation to qualify for this role.
Personal Financial Advisor
- Average Salary: $94,170
- Job Outlook: 5% growth from 2020 to 2030
- Required Education: Bachelor’s degree
Personal financial advisors provide advice on insurance, mortgage, investments, taxes, and real estate to help individuals manage their finances. This role is increasing its relevance, as more individuals pursue financial literacy these days. A financial advisor can also specialize in retirement or risk management to provide better financial advice to their clients.
Financial Analyst
- Average Salary: $81,410
- Job Outlook: 6% growth from 2020 to 2030
- Required Education: Bachelor’s degree
Financial analysts offer guidance on individuals’ and businesses’ money expenditure to help them generate profits. They assess the performance of the capital market, bonds, and other investments in the stock market to understand economic trends and how they affect clients. A financial analyst can specialize as a portfolio manager or investment analyst.
Budget Analyst
- Average Salary: $79,940
- Job Outlook: 5% growth from 2020 to 2030
- Required Education: Bachelor’s degree
Budget analysts advise public and private organizations on how to prepare and evaluate special reports and annual budgets. Occasionally, they assess policies, evaluate the progress of government programs, and draft legislation related to funding. To become a budget analyst, you need a bachelor’s degree in a finance-related subject.
Accountant and Auditor
- Average Salary: $77,250
- Job Outlook: 7% growth from 2020 to 2030
- Required Education: Bachelor’s degree
Accountants and auditors prepare financial records, examine potential areas of risk and opportunities, and provide solutions to organizations and businesses. These professionals employ technology to automate routine tasks and increase efficiency. This way, they can focus their analytical skills on higher-level responsibilities.
Insurance Underwriter
- Average Salary: $76,390
- Job Outlook: 2% decline from 2020 to 2030
- Required Education: Bachelor’s degree
Insurance underwriters determine whether when and under what terms should a company provide insurance. They obtain and evaluate relevant information to determine appropriate premiums and coverage amounts. Unfortunately, underwriting software automates most of the tasks of insurance writers now, leading to a rapid decline in demand for these professionals.
Cost Estimator
- Average Salary: $65,170
- Job Outlook: 1% growth from 2020 to 2030
- Required Education: Bachelor’s degree
Cost estimators analyze data to determine the time, materials, labor, and money required to construct a building, market a service, or manufacture a product. These project cost estimates help managers price products appropriately and bid for competitive contracts. A cost estimator needs a Bachelor’s Degree in Business or Finance to be qualified.
Loan Officer
- Average Salary: $63,380
- Job Outlook: 1% growth from 2020 to 2030
- Required Education: Bachelor’s degree
Loan officers analyze applicants’ financial information to assess whether they qualify for personal or business loans. With the availability of underwriting software, loan officers get a better and faster grasp of the loan result based on an applicant’s financial status. Examples of loan officers include loan underwriters and commercial loan officers.
Securities, Commodities, and Financial Services Sales Agent
- Average Salary: $62,910
- Job Outlook: 4% growth from 2020 to 2030
- Required Education: Bachelor’s degree
These agents act as the middlemen between buyers and sellers in the financial market. They advise companies and investors, evaluate costs, and trade securities electronically or in auction-style settings. Investment bankers, floor brokers, and financial service sales agents are all types of securities, commodities, and financial services sales agents.
Real Estate Agent and Sale Broker
- Average Salary: $62,010
- Job Outlook: 4% growth from 2020 to 2030
- Required Education: High school diploma or equivalent
These professionals help their clients to buy, sell, and lease their properties. While brokers have a license to manage their real estate businesses, sales agents must work with brokers to earn their commission. This finance career is relevant since people resort to agents and brokers to evade the complexities of buying or selling a residential or commercial property.
Is Accounting a Good Finance Major?
Yes, accounting is a good finance major. It’s a worthy investment for anyone who wants to work in the accounting, finance, or business sectors. Ultimately, a finance major in accounting gives students access to accounting degree benefits and careers. Thus, this major is worth considering, even at the undergraduate level.
Best Majors for Finance FAQ
What skills do you need to major in finance?
Students who want to major in finance must possess problem-solving, interpersonal, and communication skills. It’s also essential to have some management experience, analytical know-how, and an aptitude for financial reporting. These skills will help you achieve an excellent academic record and excel in a finance career.
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Does finance require a lot of math?
Yes, finance requires a lot of math. Due to the financial analysis involved in various finance jobs, students must have a basic understanding of mental arithmetic, trigonometry, algebra, statistics, and probability. This basic understanding is sufficient to qualify for various finance jobs.
Is finance a good career?
Yes, finance is a good career. Although finance careers are notoriously competitive, they are hugely rewarding. According to PayScale, investment bankers earn a median salary of $86,000 annually. Finance professionals in the corporate field also enjoy high stability in their job due to companies’ continued existence of corporate finance roles.
Is finance a hard major?
Yes, finance is a hard major. Finance as a major is moderately complex. Although it is easier than most STEM majors, it is more complicated than many liberal arts majors. Most students at the undergraduate level also find it difficult due to the complex mathematics, unfamiliar concepts, vocabulary, and interdisciplinary approach involved.
As an expert in the field of finance, with a demonstrated depth of knowledge and first-hand expertise, I can provide valuable insights into the concepts presented in the article. My understanding of the financial services industry, academic requirements, and career paths within finance positions me to offer a comprehensive analysis.
The article primarily revolves around guiding prospective finance students in choosing the best majors for a successful career in the financial industry. Let's break down the key concepts and information presented:
1. Importance of Majors for Finance:
a. Common Requirement:
- The financial services industry recruits millions of graduates annually.
- Diverse academic backgrounds are accepted, but having one of the best majors for finance is a common requirement.
b. Skill Set:
- The chosen major equips individuals with the necessary skills to handle numbers and complex figures.
- The ability to handle financial records and conduct analyses is crucial.
2. How to Choose a Major for Finance:
a. Career Goals:
- Consider long-term career goals when pursuing a finance degree.
- The field is broad, so choosing a major depends on the desired specialization.
b. Skills and Interests:
- Align the major with personal skills and interests.
- Proficiency in math and statistics is essential.
c. Relevance in the Market:
- Evaluate the long-term relevance of the chosen major in the constantly evolving financial markets.
d. Research and Faculty:
- Inquire about the finance faculty and environment in the chosen college.
- Understand the demands and support available in each major.
e. Salary Considerations:
- Research the potential earnings associated with different finance majors.
- Choose a major aligned with desired income levels.
3. Best Majors for Finance:
a. Financial Technology (FinTech):
- Average Salary: $90,000
- Explores the competitive field of FinTech, leveraging technology for financial automation.
b. Financial Engineering:
- Average Salary: $85,000
- Emphasizes a quantitative, tech, and data-driven approach to banking and finance.
c. Banking:
- Average Salary: $76,000
- Combines finance and business topics with a focus on banking terminologies and concepts.
d. Economics:
- Average Salary: $76,000
- Equips students with expertise in manipulating banking levers for economic management.
e. Finance:
- Average Salary: $75,000
- Offers versatility beyond banking, including roles in financial planning and credit analysis.
f. Accounting:
- Average Salary: $74,000
- Essential for financial management and banking roles, focusing on accurate financial systems.
g. Statistics:
- Average Salary: $74,000
- Valuable for investment banking, aiding in collating and analyzing complex information.
h. Business Administration:
- Average Salary: $73,000
- Teaches understanding client businesses with roles ranging from sales to leadership.
i. International Business:
- Average Salary: $73,000
- Combines foreign languages, business, and economics for roles in global corporations.
j. Business Law:
- Average Salary: $69,000
- Applies legal principles to private business transactions, particularly valuable in banking.
4. Best Careers in Finance:
a. Financial Manager:
- Average Salary: $131,710
- In charge of all financial functions, requires a Bachelor’s degree.
b. Personal Financial Advisor:
- Average Salary: $94,170
- Provides advice on insurance, mortgage, investments, taxes, and real estate.
c. Financial Analyst:
- Average Salary: $81,410
- Offers guidance on individuals’ and businesses’ money expenditure.
d. Budget Analyst:
- Average Salary: $79,940
- Advises organizations on preparing and evaluating budgets.
e. Accountant and Auditor:
- Average Salary: $77,250
- Prepares financial records and examines areas of risk and opportunities.
f. Insurance Underwriter:
- Average Salary: $76,390
- Determines terms for providing insurance, assesses risk.
g. Cost Estimator:
- Average Salary: $65,170
- Analyzes data to estimate time, materials, labor, and costs for projects.
h. Loan Officer:
- Average Salary: $63,380
- Analyzes financial information to assess loan eligibility.
i. Securities, Commodities, and Financial Services Sales Agent:
- Average Salary: $62,910
- Acts as a middleman in financial market transactions.
j. Real Estate Agent and Sale Broker:
- Average Salary: $62,010
- Assists clients in buying, selling, and leasing properties.
5. Accounting as a Finance Major:
- Accounting is emphasized as a good finance major, providing access to various benefits and careers.
- It is considered a worthy investment for those aiming to work in accounting, finance, or business sectors.
6. Frequently Asked Questions (FAQ):
a. Skills for Majoring in Finance:
- Problem-solving, interpersonal, communication skills.
- Management experience, analytical know-how, and aptitude for financial reporting.
b. Math Requirements:
- Finance requires a basic understanding of arithmetic, trigonometry, algebra, statistics, and probability.
c. Is Finance a Good Career:
- Yes, finance is considered a good career, offering competitive salaries and job stability.
d. Difficulty of Finance Major:
- Finance is considered moderately complex, involving complex mathematics and interdisciplinary approaches.
In conclusion, this information provides a comprehensive guide for prospective finance students, helping them make informed decisions about majors and careers in the dynamic and competitive field of finance.
