Finance Majors Guide

What Does it Mean to Study Finance?

While a degree in accounting is meant to cover a diverse range of business functions across many industries, a finance degree takes a narrower approach. Financial accounting is separate from general accounting since it serves the decision makers outside of the organization, such as banks, government agencies, stockholders, and suppliers.

A successful career in finance calls for a unique set of skills ideally suited to those who are outgoing and inquisitive by nature. Using mathematical aptitude and abilities, financial professionals strive to improve the financial growth of their organization or client. Opportunities can be influenced by your GPA and previous professional experience.

Types of Finance Degrees

Finance degree programs can be found at all degree levels and in a multitude of settings. Online programs are particularly well suited to many types of business degrees, including those in finance. Because much of the material is theory-based and requires little or no hands-on requirement, courses in finance tend to translate well to the online learning environment. Additionally, due to the nature of online learning, an online finance major can study at a time that is convenient for them. This is especially helpful for working adults and those with families, many of whom may be attempting to increase their level of formal education in order to advance their careers.

What Can You Do With a College Degree in Finance?

The opportunities that can come with a finance degree span many areas, including corporate and international financial management, personal financial planning, and investment services. Brokerage firms, commercial and investment banks, insurance companies, and other financial intermediary companies all employ finance graduates. Common jobs for those who have earned a degree in finance include:

Financial Analysts

A financial analyst will research a client’s or organization’s financial status, including their history, risk tolerance, and current expenditures and investments. They make recommendations based on financial goals and business environments.

• Minimum Educational Requirement: A bachelor’s degree is usually the minimum educational requirement for financial analysts. However, advanced positions may require applicants to possess a master’s degree in finance, business, or another related field.
• Special Certifications or Licensures: Most financial analysts must be licensed through the Financial Industry Regulatory Authority (FINRA). Certification, such as the Chartered Financial Analyst (CFA) certification, may be required by some employers.

Financial Managers

These professionals are tasked with managing the financial health of a company and developing its long-term financial goals. As a financial manager, you might direct financial reporting, investment activities, and cash management strategies at any number of professional or government organizations. Financial management calls on your creative thinking and your ability to direct your team to conform with the company’s broader goals.

• Minimum Educational Requirement: Generally speaking, a financial manager is required to hold at least a bachelor’s degree in finance, accounting, or a related field. Employers may also seek candidates with at least 5 years of experience. Many employers prefer financial manager candidates who have earned a master’s degree.
• Special Certifications or Licensures: Most financial manager positions do not require certification, although it may serve as validation of a candidate’s professional abilities. Available certifications include the Chartered Financial Analyst (CFA) from the CFA Institute and the Certified Treasury Professional from the Association for Financial Professionals.

Personal Financial Advisors

These professionals concentrate on advising individuals and families on financial matters, from retirement savings to insurance protection. This work requires excellent interpersonal skills, as financial advisors spend much of their time meeting with clients and explaining their options. A good financial advisor understands investments, taxes, and estate planning issues. You can practice within a company or as a sole proprietor, if you have strong entrepreneurial skills.

• Minimum Educational Requirement: Most entry-level financial advisors must have a bachelor’s degree to obtain employment, although a master’s degree can help with career advancement in some companies. Intensive on-the-job training is also required.
• Special Certifications or Licensures: Personal financial advisors are usually required to be licensed through FINRA, although the specific license required may depend on the type of advice given. If they advise on specific investments, financial advisors are also required to be registered with the Securities and Exchange Commission (SEC).

Loan Officers

As a loan officer, you will evaluate and approve applications for loans from individuals, corporations, or both. Success in this field may also require a certain amount of sales, as many loan officers must find and contact leads. These professionals might work in commercial lending, consumer lending, or mortgage lending. Individuals can also specialize in loan collections or underwriting.

• Minimum Educational Requirement: For all types of loan officer positions, a bachelor’s degree is typically needed. Loan officers must also complete on-the-job training requirements.
• Special Certifications or Licensures: Certification is not always required for loan officers, although it may improve the possibilities for advancement. The Mortgage Bankers Association and the American Bankers Association offer certifications for these professionals. Additionally, mortgage loan officers must obtain a Mortgage Loan Originator license (MLO). Certain states may require mortgage loan officers to complete additional training and requirements.

Securities, Commodities, and Financial Services Sales Agents

These finance professionals advise clients and businesses on the purchase and sale of specific commodities and financial securities. They might assist their clients by placing trades for them. Advice may also be given to companies regarding potential investors, mergers, or acquisitions. Brokers, investment bankers, and traders fall under this umbrella.

• Minimum Educational Requirement: Most entry-level positions require at least a bachelor’s degree. A master’s degree in finance or business could be beneficial for advancement in some positions and companies. On-the-job training is almost always required.
• Special Certifications or Licensures: Registration and licensure through FINRA is required for these types of jobs. Specific licenses are determined by specialization. Continuing education requirements also apply.

Finance Salaries and Career Outlook Data

Finance Associations and Organizations

A number of associations and organizations exist to serve finance professionals in this highly regulated industry. Some of these organizations supply assistance and support, while others are actually in charge of regulations. Here are a few of the most important:

• Financial Industry Regulatory Authority (FINRA) — FINRA is a not-for-profit, independent organization authorized by the federal government to regulate its members and markets. Many positions in finance require registration or licensure with FINRA.
• CFA Institute — The CFA Institute promotes education, ethics, and excellence in finance. They offer the Chartered Financial Analyst (CFA) certification as well as continuing education opportunities for those in the financial industries.
• American Bankers Association (ABA) — The American Bankers Association acts as a source of training, resources and advocacy for policy on behalf of its members. The ABA also offers a number of professional certifications within the banking industry.