Economics Major vs Finance Major
Summary
TLDRIn 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
💼 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.
🎓 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.
Mindmap
Keywords
💡Finance Major
💡Economics Major
💡Salary
💡Academic Researcher
💡Master's Degree
💡PhD Program
💡Industry Careers
💡Theoretical Topics
💡Practical Application
💡Grad School
💡Career Paths
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
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