Is Finance the Easiest Major?
Choosing a college major is a tough decision. It can shape your career path, shape your level of success, shape your future. So how do you choose a major that’s right for you? One of the factors many students consider is the level of difficulty. Is it worth it to pursue a hard major like STEM or a relatively easy major like most liberal arts? Today we take a closer look at one major in particular: finance. Is finance the easiest major? Or does it require more hard work than you might think? Let’s find out.
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FAQs About Finance as a College Major
What is Finance?
Finance is a field that deals with the study of money management. It is concerned with the way organizations and individuals raise, allocate, and use monetary resources over time, taking into account the risks involved in their projects. Finance can be further subdivided into the areas of corporate finance, personal finance, and public finance.
What Are the Benefits of Pursuing Finance as a Major?
There are several benefits to pursuing finance as a major:
- Job Security: Having a degree in finance opens up many job opportunities. According to the Bureau of Labor Statistics, finance occupations are projected to grow 5% from 2019 to 2029, adding about 476,000 new jobs.
- High Earning Potential: A finance major can lead to a lucrative career, with many positions offering six-figure salaries.
- Hands-On Learning: Finance courses often integrate real-life experiences for students to learn from, such as stock simulations, financial statement analysis, and case studies.
- Transferable Skills: A finance major equips you with valuable business skills that can be applied to various industries, such as critical thinking, problem-solving, and financial analysis.
Is Finance a Hard Major?
Finance is a somewhat difficult major. It is much harder than certain liberal arts majors, such as history and philosophy; however, it is not as hard as the “STEM” majors: science, technology, engineering, and math. In order to succeed as a finance major, students need to have a solid understanding of accounting, economics, and mathematics. They also need to be skilled in critical thinking, problem-solving, and communication.
What Are Some Common Courses in a Finance Major?
Some common courses in a finance major include:
- Financial Analysis: This course covers techniques for analyzing financial statements and identifying key financial indicators.
- Investments: This course focuses on the analysis and management of investment portfolios.
- Corporate Finance: This course covers the financial activities of corporations, such as capital budgeting, financial statement analysis, and working capital management.
- Financial Markets: This course covers the structure and functions of financial markets, including the stock market and bond market.
What Job Opportunities Are Available for Finance Majors?
There are several job opportunities available for finance majors, including:
- Financial Analyst: Financial analysts provide guidance to businesses and individuals on investment decisions. They analyze financial data and present their findings in reports.
- Investment Banker: Investment bankers work with clients to help them raise money by underwriting and issuing securities.
- Financial Planner: Financial planners help individuals and families develop short-term and long-term financial goals and plans, and suggest appropriate investment strategies.
- Accountant: Accountants manage financial records and transactions for businesses and individuals.
Why Isn’t Finance Considered a “Hard” STEM Major?
STEM stands for Science, Technology, Engineering, and Mathematics. STEM majors are known to be some of the harder majors because of the significant amount of mathematics skills and problem-solving strategies they require. So why isn’t finance considered a STEM major when it, too, requires extensive math knowledge?
Math is at the heart of both finance and STEM majors, so it’s understandable that they share some similarities. However, there are some key differences that separate finance from STEM:
- Focus on Analysis: Finance majors use math primarily to analyze and interpret financial data, whereas STEM majors use math to formulate theories and solve problems.
- Emphasis on Logic vs. Creativity: Both fields require critical thinking and problem-solving skills, but STEM majors tend to emphasize logic and objective reasoning, while finance majors can be more creatively flexible when analyzing financial scenarios.
- Types of Math: STEM majors tend to focus on pure mathematics and theoretical concepts, while finance majors tend to focus more on applied mathematics and its applications to finance.
Choosing a major is a significant decision, and it’s important to consider all your options before making a choice. Finance is a challenging and rewarding major with plenty of job opportunities and high earning potential. While it’s not as hard as STEM majors, it still requires a solid understanding of mathematics, accounting, and economics, as well as strong critical thinking and communication skills. If you’re considering a career in finance, it’s a major worth considering.