Economics Degree vs Finance Degree- What’s the difference?
October 23, 2013 Blog
It can be hard to tell the difference between an economics degree and finance degree</a> because they seem almost the same. Both of these fields of study concern money and the economy, and both of them have an amazing career potential because every business needs help with its money. At the same time, you’ll notice some differences when you look at the direction of study and the careers that these degrees will help you obtain.
Direction of Study
Classes in finance will often stress certain aspects that affect the market and the client’s individual finances. For example, you’ll learn about interest rates, analyzing the current market, finding price trends and risk quantification. Many classes will also discuss accounting, assets, finding and minimizing liabilities and analyzing a business’s financial statements and accounts to see how the company is doing.
Economic classes will focus more on the overall market and how the government affects it. You’ll learn about what effect production has on a country and how to determine a nation’s overall consumption of goods. You’ll also see how certain government laws will affect taxation and spending. Many classes will also focus on financial regulations. Students will also understand how to identify trends in GDP and inflation.
Both of these degrees will help you qualify for a variety of positions at many different companies, but just like the direction of study, the jobs are quite different. People who have a finance degree will typically work at banks and firms where they help customers and clients with their finances. Depending on your exact position, you might help people get loans, analyze financial statements to see how well
the company is doing or develop budgets based on the client’s goals.
Some common jobs for a finance degree holder include loan officer, credit analyst, insurance agent and treasurer.
People with an economics degree will typically work for government offices at the state or federal level, or with universities. Some of them will also work for private companies, but this isn’t quite as common. You’ll primarily be analyzing the local or national economy to help create and change economic policies so that the area thrives. You might also study trends so that you can help government offices.
Both of these degrees can help you reach a management position, but you’ll need at least a six-year degree in most cases. There are very few business that will permit people with a four-year degree to become a manager.
The common income is typically high with both degrees, but a finance degree is somewhat better. People with economics degrees will typically make around $70,000 to $115,000 at their peak. If you have a finance degree, then you can expect around $65,000 to $170,000.
At the same time, this entirely depends on your position. For example, some less motivated finance degree holders work for years as bank tellers. The position has a median income of around $24,000. There are also some senior economists that make more than $115,000 a year.
Choosing between an economics degree and a finance degree can be difficult because they seem so similar initially, but there are some major differences when you really consider the specifics. If you like helping companies with their money, then a finance degree is better. If you like analyzing spending trends and creating policies, then an economics degree is better.
Category: Personal Finance