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Is A Master’s Degree in Finance Worth It?
Is a Masters Degree in Finance Worth It? Sooner or later you may come to this question when you climb up the corporate finance career ladder. You may also think about increasing your earning potential or shift careers and try to figure out – is a master in finance worth it? Is it time to get into a business school or university for a master’s degree in finance?
If you want to establish in a competitive job market and improve your professional status masters degree in finance may be one of the options. If you want to do finance for a career, of course.
I am sure you also want to know how long it takes to get a master’s degree and how much money it will cost you. Let’s weight all pros and cons before going into further graduate study.
Here is a good free finance 101 video tutorial for those interested to learn finance basics. Three more tutorials are posted below in this article.
How Long Does the Master’s in Finance Program Last?
Is a master in finance worth it in terms of time spent and opportunity cost? Traditionally, the route to a master’s degree takes two years of post-baccalaureate study. Of course, you can set your hands to master’s only after you have already completed a bachelor’s degree which takes for about 4 years.
NOTE: Opportunity cost is the opportunity you forgo while you take some specific route. For example, two years spent in business school vs. two years of practical work experience + salary to be earned.
So, to become a master in finance you have to expend about 7 years overall. Is a master in finance worth it to spend so much time? What is the return on investment of so much TIME, in addition to money? Return on investment means how much more money you will be making thanks to a degree in finance. Or, what additional options and career opportunities it will give you, compare to your current situation. You need to make that decision for yourself.
So much time and money may not be suitable for students who are not ready to waste time for study and are looking for business experience instead of a master’s degree. You must like finance to do it – no doubt about that. Do not just look into the money side – look at it as if you will have to do finance (and maybe, sales of financial products) every day, month after month, year after year.
Others can’t stop exploring business areas and do their best to become more skillful and qualified in finance. They feel fine about the fact they spend two years of life for getting a finance degree and find a well-paid job. Even better, many students elect to get a master’s degree in one year! How is it possible? You can complete your degree part-time by joining one of many flexible online programs.
Another finance tutorial
How Does It Cost on Average for a Masters in Finance?
The cost matters! According to Financial-Aid organizations, you will pay for your post-baccalaureate education between $25 000 and $150 000. The total price depends on the chosen university and the master’s program. For example, the cost for the MBA program can be about $40 000 on average.
But, school ranking matters for any degree, including a master’s in finance. Cheap degrees from low-ranked business schools may not yield much benefit other than some additional points on resume and more knowledge.
So, for example, UCLA, a better business school, will cost about $16,000 annually for residents. At the same time, they offer a Masters in Financial Engineering – some fancy masters degree in finance to propel a career. And the program costs up to $60,000. Allegedly, this is a heavy quantitative program with a 94% placement rate. https://www.anderson.ucla.edu/degrees/master-of-financial-engineering/financing
But good luck getting into that one. I am sure it is very competitive.
As an example, a master’s in finance at Arizona State University an online or resident option will cost you $11,000 – $13,000 in tuition (annually). Arizona total cost is slightly over $38,000 (https://wpcarey.asu.edu/masters-programs/finance/program-cost).
The University of Colorado or Regent University online masters will cost you even less than that! The University of Colorado may be a better school overall.
What you should do is take the cost of the program, add the cost of lost wages if you go full time and have to forgo any job, even low-wage job, and arrive at the real total cost. Is a master’s degree in finance worth it? Let’s talk further to find out.
Here is personal finance tutorial – a good one
PROS AND CONS OF GETTING A MASTER’S IN FINANCE - Is a Masters Degree in Finance Worth It For Career?
There are several benefits of why getting a master’s in finance values for your money. At the same time, you should think of all those hidden dangers and risks you will surely face on your way.
- Wasted money for education?The total cost of your advanced education is the fact you shouldn’t forget. Of course, master’s programs vary, but they are not cheap. If you want to boost your career by going to a reputable school or a prestigious online university, you will pay quite a bit. When looking for the ideal business school and master’s program, take all this seriously, and pay attention to the tuition costs and living expenses for the programs in your area above all.
- Time away from your career? Sometimes, you have to choose between getting valuable experience in the business area and losing your precious time, and most likely, some of your potential. Are you going to continue your education and work full time? If not, you may fall out of the loop for some time.
- Career opportunities? Can MF status give you a boon for career growth? Judge for yourself! Having this degree in your, you may have a better flying jumpstart than other candidates. That means you have mastered your knowledge and ready to max out! You may get a step up in some better firm or company. Especially, if you already have some experience in that certain area of the financial sector.
- Good salary? How much you will pay for your master’s study is a begging question for all graduates. We discussed it above. Now, ask yourself if it will be a good investment. Everyone knows that master’s costs money.
But who knows, it may become the best investment in life! Let’s compare the salary of masters and people with bachelor degrees. Postgraduates overall earn 15-20% more money than undergraduates. Speaking about the USA, the difference is sometimes even bigger.
Of course, every country is different, but this information is enough to make correct conclusions. You may earn more with a master’s degree. Plus, specialized masters usually find a job sooner than generalists, or undergraduates, in my humble opinion.
NOTE: Degree is just leverage, work experience is the base.
Probably, the first job you will get with your master’s is a financial analyst of some sort. According to the US Bureau of Labor Statistics, the professional of this field earns about $80 000 per year. Of course, with a new professional level, your earning opportunities can be a delight to the eyes and pockets.
A typical salary range for experienced one with an advanced degree can reach anywhere from $120 000 to $150 000 or $170 000. If you are lucky to get into hedge funds or investment banking, that can go higher. Again, business school rank matters. Higher-ranking school – better job opportunities.
And another personal finance tutorial
IS A MASTER'S IN FINANCE WELL WORTH YOUR EFFORTS?
Is a Masters Degree in Finance Worth It For Finding a Job?
It’s natural when students doubt signing up for the MF program. They try to answer: Why get a master’s in finance? It’s a wise choice for those, who want to find a new top-paying job in the fastest way because of their enchanted skill and working potential.
Master’s graduates can find a job either in small firms and big companies or firms. Also, you can start your own business or find a job in government financial institutions. As you can see, there are possibilities for a job seeker to gain a foothold in science, technology, finances, or manufacturing. What career growth does your post-bachelor degree open?
Corporate finance
If you are good at financial strategies and planning, corporate finance is the first growing area for you to consider when searching for a job. At the MF program, you learn how to apply different ultimate financial analysis techniques. It gives you a magic slap to start your project or get a job with a respectable financial establishment.
International finance
This area needs specialists in global economics and international accounting. Learning the basics of international financial laws and investments is a must. But again, you will go for a job which you will get, not which you will want. That is how it works.
Investment banking
To be a good specialist in banking, you should know everything about banker-brokers trades and money flows. Being a part of a banking institution is prestigious. Of course, you play a crucial role in sending and receiving monetary funds. Your career options widen with big-money deals and successful audit. You feel comfortable working as a financial analyst, risk manager, or company advisor.
Portfolio management
A portfolio is a collection of investments. You can manage this process as a portfolio manager. It is important to know everything about investments in different areas and changing market conditions.
So, you may get jobs like a junior portfolio manager, eventually jump to CFO or portfolio manager.
Quantitative finance
To become a good specialist in quantitative financing, you should know how to apply quantitative methods and complex mathematical models of pricing and trading. You have to be highly skilled in finance, math, and also programming. Python programming skills may be required by employers.
Risk management
It is not good to be a risky person to work as a good and skilled risk manager. You have to know the ropes of the most effectual risk management techniques and risk measurement tools. As a risk manager, you try to reduce financial loss and limit spends.
Most popular jobs for master's graduates in a finance market:
Financial analyst is often called a security analyst or investment analyst. Anyway, this is a person, who is skilled in financial trends and strategies, evaluates the performance of bonds, stocks, and other types of company investments. Quantitative job. Internship or lower-paid junior positions could be the start of a future career.
Financial manager has a unique ability to oversee the financial activities of a company. They conduct every single step, looking for the right way to reduce costs and increase revenues for organizations. Need finance work experience for this position.
Personal financial advisor or financial advisor is a guide for individuals companies on how to manage their incomes and expenses. This profession includes strong knowledge in financial goal setting and monitoring, providing effective advice on savings and investments. Often, it is a sales job – you sell financial products that fit clients’ needs.
Chief financial officer supports the overall financial health of a company. This profession supposes working and cooperating with other finance and accounting managers on financial planning. Need work experience – about 5-7 years in a financial managerial position.
Wealth manager is someone close to personal financial advisors, except for this specialist helps people to manage their wealth.
TIP: Check job sites to see requirements and opportunities! And note, many jobs never appear on job sites. You need to build a network of connections. Talk to people. Go to lunches. Hang out in clubs. Yeah, I am not in that, by the way. Hopefully, you will be much better.
MBA VS MF: WHAT'S YOUR CHOICE?
Looking for greener pastures in finances, you often scramble between undertaking further study by gaining an MF or master’s degree in finance and MBA, master of business administration. So, how to pick the right side? An MBA in finance may be also a good option.
MBA specialist
Is a Masters Degree in Finance Worth It or is it better to get an MBA? It depends. If you are already in finance, have undergrad in finance, and simply want to rise up the career ladder on finance or other related areas, you can hardly find a better solution than taking an MBA program from a higher-ranking school. Get ready to enhance your skill and knowledge in the theory of global finance, math, investment basics, market analytics, financial accounting.
Keep in mind that MBS coursework writes about a broad spectrum of business topics like entrepreneurship, accounting, economics. The MBA welcomes graduates with a broad repertoire of knowledge in business. Earning opportunities are high. But since we are talking finance – choose a concentration in finance.
MF specialist
If you want to switch to finance, then masters in finance may be worth it. This program doesn’t require any experience in business and previous work in a sphere of finance. MF students are younger than MBA incomers and often are rookie zeros in the finance industry. Master’s finance programs are shorter because you can take a one-year online course.
On the other hand, the MF program is much more financially specific. Depending on your career goal you can take a proper master’s course in a chosen area. You don’t disperse your attention to unnecessary things and focus on the financial area you are interested in.
Are you trying to get to the bottom of what you can do with your new professional level after graduation? It would be more correct to say what you CAN’T DO! So many ambitious goals welcome you! Being MF graduate you become an attractive candidate for a wide range of top-paid, career-climbing jobs. Is a master in finance worth it? It depends on your career goals.