For anyone venturing into a professional career in the business world, choosing between an economics vs. finance degree is an early educational decision that can have a pivotal effect on your future. While both academic fields offer a strong foundation for learning how markets function and how financial systems operate, each degree program caters to distinct skills and career aspirations. With an economics degree, you’ll better understand economic theories, policies, and their impact on society. On the other hand, earning a finance degree means focusing your studies on managing money, investments, and financial planning. Understanding the main distinctions between these two areas can help you decide on which education path is right for you.
Table of Contents
- What is a Finance Degree?
- What is an Economics Degree?
- Economics vs. Finance Degree: Key Differences
- Career Paths for Economics Majors
- Career Paths for Finance Majors
- Should I Study Finance or Economics?
- Start your Degree in Finance or Economics
Below, let’s explore the unique aspects of both economics and finance degrees, including the skills you’ll develop, the courses you’ll encounter, and the career opportunities available in each field.
What is a Finance Degree?
A finance degree provides a comprehensive foundation in money management, financial planning and budgeting, investment strategies, and fiscal systems on both personal and corporate levels. You’ll graduate with the key skills needed to succeed in various financial jobs, such as analyzing financial markets, managing assets, making smart investment decisions, handling risks, and guiding corporate finance to achieve business goals.
Indeed, a finance education fosters a deep understanding of how money circulates within organizations and how financial decisions shape both corporate performance and the greater economic landscape. But from a broader perspective, finance is also a cornerstone of the global economy, fueling growth, supporting business expansion, and empowering people to realize their personal financial goals.
A finance degree usually includes courses in accounting, economics, financial analysis, portfolio management, and business ethics. This training prepares graduates for jobs in banking, investments, corporate finance, financial planning, advising, or fintech.
What is an Economics Degree?
Economics is a dynamic field that studies how societies use resources to produce, distribute, and consume goods and services. It focuses on understanding the choices people, businesses, and governments make when faced with limited resources and unlimited wants, and how these choices impact markets on both small and large scales.
Earning an economics degree, you’ll explore economic theories, data analysis, and the impact of government policies on economies, gaining insights into issues like inflation, unemployment, and global trade. You’ll also develop a deeper understanding of market forces, price determination, and the impact of economic policies on individuals, businesses, and society as a whole.
The economics degree curriculum typically includes courses in economic theory, econometrics, statistics, and public policy, preparing graduates for careers in research, policy analysis, consulting, and various roles in government or international organizations.
Economics vs. Finance Degree: Key Differences
While certainly related, finance and economics degree programs have distinct focuses and prepare students for different types of careers within the business world. Finance programs tend to be more specialized, concentrating on financial planning as well as managing money and investments. They emphasize practical skills like financial analysis, portfolio management, and risk assessment. In contrast, economics programs offer a broader view, exploring how economies function at both the individual and societal levels, emphasizing theory and analysis of economic policies and trends. These differences influence the types of courses you’ll take, the skills you’ll develop, and the career paths you’ll pursue.
Economics vs. Finance Coursework
While finance courses are typically about practical applications, economics courses focus more on understanding the underlying principles and analyzing data. Consider the differing course offerings from National University’s finance and economics programs to better understand the ways these fields and their corresponding career paths may contrast:
Finance programs are typically hands-on, focusing on practical skills you can apply directly in a business environment. At National University, you’ll take finance classes like Financial Management, Investments, Finance & Banking, and Business Finance. You’ll learn to evaluate financial health, manage investment portfolios, and make smart, data-driven decisions. You’ll also take classes like Accounting and Financial Engineering & Derivatives, which will help you understand the complexities of finance.
Economics programs, on the other hand, offer a broader view of how economies work, with a strong emphasis on theory. You’ll take economics classes at National University, such as Principles of Microeconomics and Macroeconomics, which look at how decisions made by individuals, businesses, and governments affect the economy. You’ll also study data analysis to learn econometric principles and take courses in economics, philosophy, and global economic geography to understand the bigger picture. Additional classes such as Business Economics, Labor Economics, and Market Process Economics can further prepare you for a career in the business or corporate world.
Economics vs. Finance Skills
There’s plenty of overlap in the basic skills you’ll need for a successful academic and professional career in economics or finance—for instance, both fields require strong analytical capability, critical thinking, and communication—but through your studies, you’ll develop expertise in differing areas depending on which path you take:
A finance degree will help you develop several core skills, including:
- Financial Analysis: Evaluating financial statements, assessing company performance, and making informed decisions.
- Investment Management: Managing portfolios, assessing risks, and making strategic investment choices.
- Quantitative Reasoning: Using mathematical models and tools to analyze financial data and trends.
- Risk Assessment: Identifying, analyzing, and managing financial risks to protect assets and optimize returns.
- Strategic Decision-Making: Developing strategies based on financial data to guide business decisions and achieve organizational goals.
- Ethical Judgment: Understanding and applying ethical principles in financial decision-making and practices.
- Budget Forecasting: Creating and managing budgets and predicting future financial conditions.
Likewise, an economics degree will help you develop the following core skills:
- Analytical Thinking: Breaking down complex problems and assessing various economic factors.
- Quantitative Analysis: Using statistical tools to analyze and interpret economic data.
- Policy Analysis: Applying economic theories and other key principles to assess and evaluate policies and interpret economic behavior.
- Research and Report Writing: Conducting research and compiling clear, evidence-based reports.
- Public Policy Development: Evaluating and developing policies to address economic challenges.
- Economic Forecasting: Predicting future economic conditions based on current data and trends.
- International Economic Systems and Policies: Understanding global economic systems and their impact on national economies.
Career Paths for Economics Majors
With an economics degree, you can explore a variety of roles in different industries. Consider some of the common jobs and career paths you might follow after earning an economics degree, as well as their average salaries and growth expectations as reported by the Bureau of Labor Statistics (BLS):
Economist
As an economist, you’ll engage with monetary and fiscal policy by conducting research, crafting reports, and assessing economic issues. The work often involves collecting and analyzing statistical data. Many economist roles require advanced degrees.
- Median annual wage (BLS May 2023): $115,730 per year
- Job outlook (2022-2032): Projected to grow 6%, faster than average.
Market Research Analyst
Market research analysts examine consumer behavior, economic trends, and other variables, identifying trends within the data and leveraging insights into business strategy. This is a great role for anyone who enjoys breaking down complex information and transforming it into actionable knowledge.
- Median annual wage (BLS May 2023): $74,680 per year
- Job outlook (2022-2032): Projected to grow 13%, significantly faster than average
Data Scientist
Data scientists examine data sets, employing analytical tools and methodologies to uncover valuable patterns. If you love finding hidden patterns and trends within vast data sets, this role offers a direct opportunity to help businesses make informed, advantageous decisions.
- Median annual wage (BLS May 2023): $108,020 per year
- Job outlook (2022-2032): Projected to grow 35%, much faster than average
Educator (postsecondary)
If you have a passion for teaching and a background in economics, what better opportunity than to help educate the economists of tomorrow? Teaching at the college level can feel very rewarding, often offers great benefits and scheduling, and makes terrific use of your economics degree.
- Median annual wage (BLS May 2023): $84,380 per year (among all postsecondary educators)
- Mean annual wage (BLS May 2023): $133,650 per year among postsecondary economics educators only
- Job outlook (2022-2032): Projected to grow 8%, faster than average
Urban/Regional Planner
Urban and regional planners play a crucial role in shaping the economic landscape of communities. In the role, you’ll use your analytical skills to assess the economic impact of planning decisions related to resource allocation, land use, and infrastructure. An advanced degree is required for most urban/regional planning jobs, making graduate studies a logical next step on this career path.
- Median annual wage (BLS May 2023): $81,800 per year
- Job outlook (2022-2032): Projected to grow by 4%, the average rate
Career Paths for Finance Majors
Majoring in finance similarly provides a solid basis for a wide range of business and financial career paths. Consider some of the places your finance degree could take you, below:
Financial Analyst
Financial analysts are the number-crunchers who help businesses and investors make smart money moves. You’ll dive deep into numbers, trends, and market data to spot opportunities and risks, uncover valuable insights, and help guide decisions to boost the bottom line.
- Median annual wage (BLS May 2023): $99,890 per year
- Job outlook (2022-2032): Projected to grow 8%, faster than average
Budget Analyst
As a budget analyst, you’ll be like a financial detective. You’ll work numbers and dig into data to figure out where your organization’s money is going and how to spend it wisely. It’s all about making sure every dollar counts and helping the team reach their goals.
- Median annual wage (BLS May 2023): $84,940 per year
- Job outlook (2022-2032): Projected to grow 3%, almost as fast as average
Financial Manager
Financial managers ensure their organization’s financial health by creating budgets, analyzing numbers, and making smart money decisions. It’s a great opportunity to have a direct role in helping your business reach its goals.
- Median annual wage (BLS May 2023): $156,100 per year
- Job outlook (2022-2032): Projected to grow 16%, significantly faster than average
Operations Research Analyst
Operations Research Analysts use their skills to tackle complex problems within organizations. With a background in finance, you’ll regularly apply your knowledge to create and use mathematical models, improve processes, allocate resources efficiently, and help guide decisions.
- Median annual wage (BLS May 2023): $83,640 per year
- Job outlook (2022-2032): Projected to grow 23%, far faster than average
Actuary
As an actuary, you’ll use math and statistics to help your organization understand and predict risks. For example, you might estimate how many insurance claims a company could face. If you enjoy math and are considering a finance degree, this could be the ideal career for you.
- Median annual wage (BLS May 2023): $120,000 per year
- Job outlook (2022-2032): Projected to grow 23%, far faster than average
Should I Study Finance or Economics?
Both finance and economics degrees offer plenty of job opportunities with good salaries. According to the BLS, the median wage for business and financial jobs was $79,050 in May 2023. Choosing between finance and economics depends on your interests, career goals, and the type of work you enjoy. If you love working with numbers, analyzing financial markets, and making quick, strategic decisions, finance might be the best choice. A career in finance is ideal if you’re interested in money management, investment strategies, and using practical skills to achieve financial goals.
On the other hand, an economics degree could be the better option if you’re fascinated by how economies function, enjoy exploring theories and models, and want to understand the broader forces that shape markets and societies. Economics offers a bigger-picture perspective, teaching you to analyze trends, evaluate policies, and engage with both micro and macro-level economic issues. It’s a fulfilling career path for anyone interested in research, policy analysis, or roles that require a deep understanding of economic principles and theory.
Start your Degree in Finance or Economics
Whether you want to pursue a career in economics or in finance, National University offers the support, resources, and curriculum to help you achieve your educational goals. Learn more about our programs in Financial Management and Economics today! Both programs offer the flexibility to tailor your education to your aspirations, whether you’re excited about making strategic financial decisions or understanding the bigger picture of economic trends. No matter which direction you take, you’ll build skills that can lead to many different career opportunities, making it an excellent option for anyone aiming to succeed in finance.