I don’t seem to realize the difference between a Business major, Finance major, and Economics major.
What are the difference between them, and what kind of job opportunities do you get?
I want to work with real estate and such, what is more relatable?
Thank you
I always wanted to know as well.
Edit: Economics is the study of how people choose to use resources. not sure about the other ones
I will try to help. Finance is a hard field of study to explain because it crosses with accounting to a such a large degree at the undergraduate level that they are very much indistinguishable. Accounting is far more marketable than finance from undergraduate school and any job you can get with a Finance major you can get with an Accounting major but not the other way around. Finance tends to focus early on things like markets, financial instruments, financial management concepts like internal rate of return, budgeting, capital structure of a company, etc. After intro courses, Accounting majors and Finance majors take a lot of the same courses, which is why majoring in Finance is a waste in my opinion.
Economics is entirely different and generally much more difficult academically because it is theoretical and the math used is Calculus-based. Econ majors can easily minor in Math with just a few more courses. Economics is considered a social science that studies how companies work and also how the general economy works but in theoretical terms. Intermediate courses in Economics are extremely challenging often requiring advanced Calculus through Multivariable, Linear Algebra and Statistics as prerequisites. Serious stuff.
You will have to take both macro and micro econ as a finance and accounting major but generally watered down versions than what the Econ major takes. Not always but often.
My advice is major in Accounting in terms of a business major not Finance. At an AACSB accredited school, Accounting majors have jobs before graduation. The most senior financial executives are 99% of the time CPA’s. Accounting will not hold you back from front office positions either.
If you love Math and theoretical concepts, major in Economics.
Thanks!! I think I understand it better. Though I consider myself good at math, I don’t think it’s something I want to work with and Economics really targets it a lot. I am very understanding of the things you mentioned that are regarded in Finance/Accounting and I think I’d go better down that path.
I always thought though, that Accounting graduates would turn to being accountants, and as far as I’m concerned what accountants do are prepare taxes and revise statements for accuracy. I don’t think I want to be an auditor or things of the type, so am I mistaken about the Accounting career paths? After doing some research, something like a Manager of Investment Operations seems like me and that is what I’d like to do, so would Accounting be still the way to go?
Again thank you for walking me through this, I was pretty clueless!!!
While it is true that some schools have a high level of math intensity in their economics majors (or offer an option of high math intensity), there are many other schools where economics tends to attract pre-professionally oriented students who are looking for a substitute for a business major. For example, the economics majors and the intermediate economics courses at Penn State and Florida State do not even require calculus.
http://www.econ.psu.edu/undergraduate/academic-plan-eclba
http://coss.fsu.edu/economics/node/3
Of course, a students aiming for graduate study in economics needs to take much more math and statistics, such as multivariable calculus, linear algebra, differential equations, real analysis, calculus-based probability theory.
You need to recognize that being a business major (including finance or any other discipline such as accounting, IT etc.) and an economics major are very different.
Economics is a liberal arts course of study and will have a liberal arts core curriculum. You would (with rare exception) apply to the college’s liberal arts school not the business school to be an economics major. I agree that economics gets pretty theoretical at the upper levels. I would argue that economics can be easier or harder than a business program depending on a particular individual’s aptitudes.
Finance is one of many majors offered in most comprehensive business programs. If you decide to attend a business school/program you will take liberal arts core but you will also have a business core with introductory classes in a number of business subjects like finance, accounting, IT, management etc. and you will eventually go on to major in one of those disciplines. If you go this route you will have time to get a sense of what finance, accounting etc. entails before declaring a major. (Note: I agree that accounting is another good option (I am a CPA as is my S) but note that to become a CPA it now requires 150 credits so many go on for a one year MS in accounting to fulfill that requirement).
You should carefully look through the curriculum you would take for each program (can be done online) and see if one route is more appealing to you than the other.
So let’s say I do an Accountings major, MBA, and real-estate course. Would those seem relevant one to another? I am interested in investments and real estate, business, etc. I want to work with that line of work so I’m wondering if by taking those courses in the future that I will have appropriate, attractive qualifications that will help me out there with work and if what I’ve learned will be put to use in those circumstances.
Thank you so much and late happy new years for everyone!
@TurnerT I would strongly disagree on the level of similarities and ability to cross between fields as an accounting major and a finance major. The level of differentiation however would also strongly depend on the the curriculum offered by the OP’s school. Most dedicated undergraduate business schools offer finance as a separate major with its own curriculum. The advanced electives toward the major often include courses that would not be available to Accounting majors that focus on specific investment vehicles or processes such as M&A, Adv. Corp Fin, Risk Mgmt, Futures & Options, Debt, or Equity Valuation.
@cluelesschild To answer your original question, there are significant differences between all 3 both in terms of academic experience as well as career path, and within those 3 you will learn separate specializations for the majors you choose.
At the core of each major, Accounting measures the financial health of businesses, plans for different outcomes, and will focus mainly on ensuring that the correct processes are being met.
Finance focuses more so on analysis of financials rather than reporting. You do need a strong understanding of accounting, but even top undergraduate finance programs don’t require you to take more than the introductory level finance course before moving on to your advanced electives. Your analysis will result in creating models that will take into account both qualitative and quantitative metrics that will help you value investments, raise capital, etc.
Economics from an academic standpoint will depend strongly on the school curriculum as well. Undergraduate business schools will typically have a separate business economics track rather than the theoretical/behavioral track offered in a college’s liberal arts school. This would be different for a liberal arts college, or university without a separate school for business and could vary widely. The business economics track typically requires significantly less credits to complete than the theoretical track which focuses more on much more abstract scenarios, research, and more complex techniques of analysis. The theoretical track also requires a more quantitative skillset which will also require statistics, calculus, and applied mathematics which is why the curriculum typically requires more credits. Business economics focuses on applying its principles towards specific business scenarios such as monetary policy, corporate management, or market exposure. The list for economic opportunities can go on since it begins as such a broad field of study.
There are opportunities for all 3 majors to enter the real estate industry, it just depends on what side of the industry you want to be on and what function interests you most. I majored in Finance & Econ before interning in buy side real estate but most of my classmates that continued full-time in sell/buy side real estate majored in finance and either minored or double majored in accounting, but that’s partially because of our curriculum structure and strengths.
My questions for you are:
What is your current perception of what a “Manager of Investment Operations” does and why does it interest you?
What school do you attend?
What year of study are you currently in?