Are you considering studying Finance or Economics and wanting to understand which one to study?
In this article, we will discuss topics related to studying Finance and Economics Degrees.
So is Finance harder than Economics?
Economics is harder than Finance because Economics uses more advanced math (algebra, calculus, differential equations) to explain more complicated scenarios and processes.
Keeping in mind the level of difficulty does depend on your interest and skills.
Economics is a way of looking at the world, explaining the behavior of various agents, from households, companies, governments.
On the other hand, Finance teaches you data analytics, risk management, capital allocation, and investment strategy.
An investment strategy that includes the fluctuations and changes in the growth and flow of money, the value of money, and the return of investments.
While accounting focuses on the day-to-day management of financial reports and records across the business world, finance uses this same information to project future growth and to analyze expenditure to strategize company finances.
So finance degree students will likely be more interested in financial strategy and control.
So now we answered the main question let’s explore further what makes studying Economics and Finance majors so hard.
What makes Economics so hard? (Explained)
The main reason why Economics is difficult to understand is economics involves a lot of concepts and mathematics.
Students typically find learning statistics, high levels of maths (graph analysis, algebra), and how concepts interact difficult.
Economics involves studying the behavior of various agents, from households, companies, governments.
Studying economics relies on critical thinking and mathematics, especially calculus involved in the programming of models.
The typical subjects for an Economics Major are Econometrics, Economic Policy, Legal Studies, Money and Banking, Global Finance, Global Trade, Collective decisions and Accounting.
If you can get a handle on mathematics, the terminology used in economics, and an understanding of supply and demand works, then you should be able to complete an economics degree.
Getting an understanding of the basics can be challenging, but once you have them down the degree gets much more comfortable.
What makes Finance so hard? (Explained)
Finance is hard because it is technical and can involve complex mathematics and learning a mix of Economics and some Accounting
When you start to learn topics such as derivatives, Brownian, currency, etc. it becomes a lot harder.
Conversely, one would expect Finance to be heavily mathematically involved.
However, this is generally not the case.
Most Finance courses do not involve heavy amounts of mathematics.
They are typically a mix of economics and some accounting.
However, some courses have more economic focus and can make a finance degree difficult.
If you are interested in Finance and comfortable with maths, it’s likely then you will not find it that hard.
Students that succeed in studying finance are typically are well organized, detail-oriented, good at communicating and come in with some mathematical and statistical skills
To make studying finance easier, be sure to understand how to use excel as you will spend time performing calculations for future modelling.
Since Accounting and Finance go together, it’s well worth understanding the basics of accounting.
Being able to read and understand income statements and balance sheets will put you in a good position to do well in Finance.
The typical subjects that students can expect to study with Finance majors are economics, business, and management, taking classes in financial analysis, asset management, and financial management
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What can you do with Finance or Economics Degree? (Solved)
Having a Finance or Economics Degree will open up a range of career paths and range of career opportunities.
Below are some examples of job careers with average wages.
These wages will vary depending on the type, size of the organization, and geographical location.
|Finance Major||Economics Major|
|Financial Planner $87,850||Market Research Analyst $63,790|
|Financial Analyst $81,590||Economic Consultant $76,487|
|Budget Analyst $76,640||Compensation and Benefits Manager $122,270|
|Actuary $108,350||Actuary $81,590|
|Accountant $71,550||Credit Analyst $81,590|
|Credit Analyst $73,650||Financial Analyst $59,565|
|Attorney $122,960||Policy Analyst $59,565|
|Commercial Real Estate Agent $42,500||Management Consultant $85,260|
Source; U.S. Bureau of Labor Statistics (bls.gov)
Majoring in either Finance or Economics will lead to careers in high demand and relatively high salaries.
Any college major can be difficult and one may be more difficult for different people.
No major is easy and each major has a good amount of work.
The level of difficulty largely depends on your skills, interests, and what you are good at.
As with any career that you want to pursue, analyze yourself and your strengths and weaknesses before deciding which major you want to pick.
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