Economics Major vs Finance Major

Summary

In this video, the creator compares two popular majors: finance and economics. With a background in both, they analyze salary prospects, noting finance graduates tend to earn more. For academic careers, economics is favored due to its strong foundation in math and research, often serving as a stepping stone to higher education. In industry careers, finance is deemed superior for immediate job opportunities. The creator finds economics more interesting due to its theoretical impact on the world, while finance offers practical, applicable skills. The video concludes by suggesting finance for those seeking higher earnings and immediate applicability, and economics for those interested in theoretical learning and potential academic paths.

Takeaways

• 💼 Majoring in finance tends to lead to higher average salaries compared to economics, according to data from glassdoor.com and payscale.com.
• 🎓 For those interested in academia, economics is often considered a better choice, with more opportunities for advanced degrees and a focus on research and mathematical skills.
• 📈 Economics degrees are seen as a stepping stone for further education, with many students pursuing master's or PhD programs.
• 🏫 Getting into an economics PhD program is generally easier due to higher acceptance rates compared to finance PhD programs.
• 🏢 In industry careers, particularly in businesses and financial services firms, a finance degree is often more valued for entry-level positions.
• 💼 With a finance degree, one can explore various career paths including financial planning, treasury, accounting, investment analysis, and risk management.
• 📚 Economics provides a broader understanding of theoretical topics that impact the world, which some may find more intellectually stimulating.
• 💡 Finance courses focus on practical, immediately applicable skills, such as Microsoft Excel and accounting, which can be attractive to those wanting to apply their knowledge directly in the workplace.
• 🤔 The 'interesting content' factor is subjective, with the speaker personally finding economics more interesting due to its theoretical nature, while others might prefer the practicality of finance.
• 🔑 Both finance and economics are strong choices for a bachelor's degree, with the best fit depending on one's career goals, interest in theoretical knowledge, and willingness to pursue graduate studies.

Q & A

What was the main topic of the video?

The main topic of the video was a comparison between majoring in finance and majoring in economics, discussing which might be the better choice for different career paths and interests.

What are the two websites mentioned for salary comparison?

The two websites mentioned for salary comparison are Glassdoor.com and Payscale.com.

Which major on average earns more money according to the video?

According to the video, finance majors on average earn more money than economics majors.

Why might economics be a better choice for someone interested in academia?

Economics might be a better choice for someone interested in academia because it often serves as a stepping stone for further education, and it provides a stronger foundation in math and research skills.

What is easier to get into, an economics PhD program or a finance PhD program?

An economics PhD program is easier to get into than a finance PhD program because more candidates are accepted into economics programs.

Why might finance be the better bachelor's degree for someone looking to work in the industry?

Finance might be the better bachelor's degree for someone looking to work in the industry because it is typically enough to land a job in businesses and financial services firms without the need for further education.

What are some career routes one can take with a bachelor's in finance?

With a bachelor's in finance, one can pursue careers in financial planning and analysis, treasury departments, entry-level accounting roles, investment analysis, financial risk management, private equity, venture capital, and investment banking.

What is the speaker's personal opinion on which major is more interesting?

The speaker personally found economics courses to be more interesting due to the theoretical topics that affect the world from a broader perspective.

What is the speaker's view on the applicability of the topics covered in a finance major?

The speaker views the topics covered in a finance major as more directly applicable, teaching concepts that can be used from day one on the job.

What advice does the speaker give for choosing between a finance and economics degree?

The speaker advises choosing finance if one wants to potentially make more money without going to grad school and get a degree directly applicable to a job. If one is interested in theories and potentially working in academia, an economics degree may be better.