What is the Difference Between a Degree in Economics and a Degree in Finance?

Economics degree is quite different from a Finance degree in many aspects. Let us discuss more about it and evaluate it in this article.

Updated by Palka Manchanda on 5th September 2020

Although they are often taught and presented as separate disciplines, Economics and Finance are associated with each other and also influence each other to a great extent. It is thus important for investors to avoid the arguments regarding Economics and Finance, as both have their respective relevance, importance, and valid applications. But an Economics degree is quite different from a Finance degree in many aspects. Let us discuss further and evaluate it.

Finance vs Economics Degree

What is a Finance Degree?

Finance as a subject broadly deals with concepts like time value of money, interest rates, risk and return, optimum use of money, etc. It not only helps you to understand the markets but also teaches you about self-money management techniques so that we become more aware of what we possess today, and how to move ahead for a better tomorrow, and what plans we can implement today for better future prospects. 

Finance Degree focuses on target markets, corporations, and individual finances 

  • It works at both the macro and micro level, corporate and individual level

  • It deals with actual monetary effects relating to investment, and how to maximize profits using various tools.

  • Finance also focuses on how investors and companies evaluate risk and return.

  • Finance Degrees are more company and industry-specific

What is an Economics Degree?

Economics as a subject deals with the economy of the country, state, or region which may affect the money cycle for the entire industry specifically. With the help of Economics as a major, one can try to understand the current market scenario with respect to the policies, and how policy changes will affect the economy completely.

  • It works at the macro level i.e. at country, state, regional level

  • It deals with creating and amending policies that affect the industries and the entire market.

  • Economic Degrees have a limited focus on either microeconomics or macroeconomics.

  • Economics thoroughly focuses on public policy

Both economists and finance professionals have employment opportunities in government sectors, corporations, and financial markets. At a fundamental level, there will always be segregation, but both are very important to the economy, investors, and the markets for years to come.

While both are concerned with money and the economy, they result in different career paths. 

Job Prospects available for Finance degree

Finance is one of the top subjects which aims at giving students both great graduate job prospects and high earning potential. If you want to seek your career in finance, there is a wide range of options you could pursue after you graduate. Read on for an overview of some of the careers in finance

Management Consultant

Management Consultants play a vital role in organizations to solve problems, improve business performance, create value, and maximize growth. They analyze solutions for business troubles and make recommendations for changes to implement. The career of management consulting can be an extremely rewarding one for job satisfaction and compensation. This job suits people who want to flourish with a variety of things, as days can be exciting and unpredictable. There's a lot of travel involved and you will meet a huge number of interesting people. Applicants with MBA or business master’s degrees will find it considerably easier to get into the field.

Financial Manager/CFO

A Financial Manager or a CFO (Chief Financial Officer) is liable for providing financial guidance and backing to clients and colleagues. In both the public and private sectors, employers come from everywhere. In bigger companies, the role may focus more on strategic analysis, while in smaller companies you might be responsible for the collection as well as the preparation of accounts. Financial manager/CFO being a senior role will require progression within a company.

Commercial Banking

A career in commercial banking provides a range of financial services namely savings and checking accounts and also a number of loan options. As many people begin their career as bank tellers and get promoted to become branch managers therefore there is a lot of room for growth within commercial banking.

Investment Banking

Being an investment banker requires a lot of work which involves selling and trading corporate securities, and also providing insightful advice to corporations and individuals. The duties of an investment banker may also include trading stocks and bonds on the stock market.

Job Prospects available for Economics Degree

Credit Analyst

 Credit analysts have a duty to evaluate client credit scores by accumulating specific information. They also help their clients to change the credit standing by coming up with improvement plans and providing information about various financial organizations. Their evaluations are used to make important decisions regarding the client’s creditworthiness like credit card applications, loan applications, etc.

Personal Finance Advisor

Personal financial advisors work with people to help them achieve short and long-term financial goals. They assess individuals’ financial standing and help them make personal decisions on items such as savings, loans, stocks, insurance, and other investments. Financial advisors might work directly with their own clients or they might even be employed by organizations like banks or investment firms. Learn How to become a Personal Financial Advisor

Policy Analyst

Policy analysts are responsible for studying the economic trends that occur nationally as it applies to corporations and government bodies. They collect data from different sources to forecast economic trends and outcomes. 

Supply Chain Analyst

Supply chain analysts assess the processes and procedures that occur through the operations of a supply chain to expose inefficiencies and determine areas for improvement. They are mainly responsible for improving output at the lowest rates.

Economic Consultant

Economic consultants work with legal professionals and produce analysis, data, and also evidence and other materials in legal cases related to both economics and finance. consultants might also be employed for larger and more complicated cases.

Conclusion

To conclude, as the article suggests both are separate entities and have their own identity and importance. It depends on where your interests lie. You should consider the job opportunities and your field of interest and see the benefits of both short terms as well as the long term before you choose a degree. Hope this article was helpful. Choose wisely and good luck!

You might also be interested to read:

What can you do with a degree in finance?

How to become a Financial Analyst?

How to become an Economist?