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.

Outlines

00:00

💼 Comparing Finance and Economics Majors

The speaker begins by expressing their qualifications for comparing finance and economics majors, having completed a double major in both fields and a master's in finance. They then delve into a comparison based on salary potential, career paths in academia, industry careers, and the subjective nature of interesting content. According to the speaker, finance majors tend to earn more on average than economics majors. For those interested in academia, economics is recommended due to its emphasis on research and mathematical skills, which are beneficial for pursuing higher degrees. In industry careers, finance is favored as it is more directly applicable to various roles in business and financial services. The speaker finds economics more interesting due to its theoretical nature, while finance offers practical skills applicable from the first day of work.

05:01

🎓 Choosing Between Finance and Economics

In the conclusion, the speaker summarizes the key points from the comparison. They suggest that finance might be the better choice for those who prioritize higher earnings and direct applicability to jobs without further education. On the other hand, economics is recommended for those who enjoy theoretical learning and are considering a career in academia, possibly pursuing a master's or Ph.D. The speaker invites viewers to subscribe for more content like this and thanks them for watching.

Keywords

💡Finance Major

A finance major typically focuses on the study of financial markets, investments, and corporate finance. In the context of the video, it is presented as a degree that may lead to higher average salaries compared to an economics major, as per data from websites like Glassdoor and Payscale. The video suggests that a finance major is more directly applicable to industry jobs, with specific career paths like investment analyst, financial risk management, and investment banking.

💡Economics Major

An economics major involves the study of how societies allocate resources and the effects of different policies and decisions. The video discusses how an economics degree might be a better stepping stone for those interested in academia or advanced studies, as it often involves more math and research skills. It is also noted that it might require further education to land certain industry jobs compared to a finance major.

💡Salary

Salary is a key consideration for many students when choosing a major. The video script uses salary data to compare the potential earning power of finance and economics majors. It suggests that finance majors tend to earn more on average, which is a significant point when discussing the practical benefits of each degree.

💡Academic Researcher

An academic researcher is someone who conducts original research in a field of study. The video highlights that an economics major might be more suited for a career as an academic researcher or professor due to the degree's focus on theoretical knowledge and research skills, which are often prerequisites for a career in academia.

💡Master's Degree

A master's degree is an advanced academic degree that usually requires one to two years of study beyond a bachelor's degree. The video mentions that many economics majors pursue a master's degree as a natural progression, often leading to careers in academia or advanced research roles.

💡PhD Program

A PhD program is a postgraduate academic study leading to a doctoral degree. The script points out that it is easier to get into an economics PhD program than a finance PhD program, suggesting that economics provides a more direct path to advanced academic careers.

💡Industry Careers

Industry careers refer to jobs within the private sector, such as corporations and financial services firms. The video suggests that a finance major is better suited for industry careers due to the practical skills and knowledge gained, which are directly applicable to many business environments.

💡Theoretical Topics

Theoretical topics are subjects that deal with abstract concepts and principles. The video contrasts finance's practical focus with economics' emphasis on theoretical topics, which provide a broad understanding of how policies and decisions affect the world. This is seen as a draw for those interested in a more conceptual understanding of economic phenomena.

💡Practical Application

Practical application refers to the ability to use knowledge and skills in real-world situations. The script highlights that finance courses often teach skills that are directly applicable to jobs, such as using Microsoft Excel for financial analysis, which can be an advantage for those seeking immediate employability after graduation.

💡Grad School

Grad school, or graduate school, refers to institutions that offer postgraduate education. The video discusses grad school as a potential next step for economics majors, indicating that the degree provides a strong foundation for further studies, especially for those interested in research or academia.

💡Career Paths

Career paths are the various routes one can take in their professional life. The video outlines numerous career paths for finance majors, such as investment banking, financial planning, and risk management, emphasizing the versatility of a finance degree in leading to diverse job opportunities.

Highlights

Comparison of finance and economics majors

Finance majors earn more on average than economics majors

Economics is better for careers in academia and research

Economics bachelor's degrees often lead to further education

Economics majors learn more math and research skills

Easier to get into economics PhD programs than finance PhD programs

Finance is better for careers in the industry

Economics bachelor's may not be enough for solid entry-level roles in the industry

Finance bachelor's opens up various career routes in non-financial services firms

Finance bachelor's provides applicable skills for immediate job use

Economics courses are more theoretical and provide a broader perspective

Finance courses teach directly applicable job skills

Both finance and economics are great choices for bachelor's majors

Finance is better if you want to make more money and not go to grad school

Economics is better if you're interested in theories and potential academia

The video concludes with a call to subscribe for more content

Transcripts

a month ago i did a video comparing

majoring in finance to majoring in

computer science and it was a big hit so

now i'm thinking let's

do a video of comparing majoring in

finance to economics

and just a little background on me and

why you'd even care about my opinion i

did a double major in finance and

economics and my bachelor's degree and

then i ultimately went on to do a

master's in finance

and so let's get into which of these two

majors might be best for you

the first category i want to discuss is

salary i looked at

glassdoor.com and payscale.com amongst

others and found that finance majors

on average earn more money than

economics majors

although these figures are fairly close

and both are

decent paying majors but if you're most

interested

in earning more money than finance may

be the better major for you

the second category that i want to

discuss is careers in academia so this

would be if you want to work as a

academic researcher or a professor i

would say that economics is

the better major for this category and

often

economics bachelor's degrees are thought

of as almost a stepping stone

for more education so a lot of times

people who get bachelor's degrees in

economics actually go on

for either a masters or phd in economics

or another field

and in a bachelor's degree in economics

you will learn

um more math uh skills

or math you'll take more math course

work than you would as a finance major

typically and you're also gonna learn

more research skills than a finance

major typically would and and and

last point if you do want to be a

professor or go on for a phd it's a lot

easier to get into an economics phd

program than a finance phd

program because there's just a lot more

candidates that are accepted to

economics phd programs

and for the third category careers in

the industry i'm rating finance

as the winner and what i mean by the

industry

is businesses large corporations

financial services firms so if you want

to get a job in the industry

in these businesses finance maybe the

better bachelor's degree

and so with an economics bachelor's

typically this

might not be enough to land a solid

entry level

role because you're going to need to go

on for that master's degree or

potentially phd etc but a bachelor's in

finance

is typically enough to land that job

with a bachelor's in finance you can go

into

so many different career routes so if

you end up at a non-financial services

firm so this would be like a corporation

that

their main product they're not selling

financial services

you could get a job in financial

planning and analysis which i have a

video on here

or you could get a job in the treasury

department

or as some sort of entry-level

accounting role because you do

learn a handful of accounting courses in

a finance

major if you do go on to work for a

financial services firm

there's so many potential different

routes you could go down

there's uh investment analyst positions

financial risk management

private equity venture capital

investment banking

trading and it there's just the list

goes on and on

and for the last category i included

interesting content

so like which one is more fun to take

which one is more fun to learn about i

rated

this a tie because this category is by

nature very subjective and it will

differ from person to person

i can only tell you from my personal

experience that i actually found

economics courses to be more interesting

than the finance

courses and this is because in economics

you learn about

theoretical topics that really affect

the world and

your country and yourself from a bird's

eye view

so you can see a news article about a

political policy that might be proposed

and be able to intuitively understand

how that would shake out and affect the

world

and i think that's very interesting but

also the

the topics covered in an economics major

are by nature very

theoretical and hypothetical and so

if you're a person who likes theories

then you might like economics better

as far as finance the things you learn

are more applicable

so you'll you'll learn directly how

concepts you need

on the job from day one so you're gonna

learn

how to do things in microsoft excel that

you'll need to do on your job but you're

going to learn how to calculate certain

things or even

how to do journal entries and accounting

all these things that are directly

applicable so if you're a person

that wants to learn something that they

can apply from day one on whatever job

they're gonna get you might find

finance to be more interesting than

these hypotheticals that you'd learn

about in an economics degree

overall both finance and economics are

great choices for

bachelor's majors if you are looking to

potentially make more money not go to

grad school and get a degree that is

directly applicable to a real

job from day one finance might be the

better choice for you if you're

interested

in learning about theories from a bird's

eye view

and you potentially want to go to grad

school for a master's

or phd and maybe work in academia down

the line then an economics degree

may be a better choice for you i hope

you enjoyed this video and subscribe for

more content just like it

thank you