Finance, Accounting, or Economics major?

<p>These are the three majors I am looking at. I am a rising senior, and I will likely be attending Penn State. Can anyone give me some insight into the difficulty, future job prospects/pay, and pros/cons for each of these majors? Thanks!</p>

<p>This is in order in my mind for the majors you are asking about. Any business-related major would be much better than english/humanities/soft-sciences/law. </p>

<p>Accounting: To establish a bias, this is what my degree is in. Accounting is an incredibly promising and stable field. Accounting teaches the fundamentals of business or “language of business” as many call it. Accounting majors consist of three general areas for courses: Tax, Financial Accounting, and Managerial/Cost Accounting. Different students enjoy different areas more than others, it seems the minority truly enjoy all 3. Accounting can take someone into just about any and all area of business as far as careers go outside of college. The Big Four CPA firms are among the best employers for college grads, as far as salaries and number of hires. Accounting is a more difficult major, not because of any intense math as many think, but because of the complex problems you are asked to apply many rules, regulations, laws, and principles to. Many universities note that accounting is the department with the highest job placement rate at graduation. </p>

<p>Finance: Finance is another great major. Finance is also versatile and graduates go into several areas after graduation. Generally to land a great job/internship a Finance major needs to go to a great school (whereas Accounting and some other fields of study aren’t very concerned with what school you graduate from) and previous experience. Many finance students end up going to get an MBA after a couple or few years of work experience after undergraduate. </p>

<p>Economics: My father-in-law is an Economics professor. Economics is well-respected because it is a difficult major. Economics requires students to know complex math including calculus, statistics, econometrics and quantitative methods. Economics leads people to many great careers, but careers that could be achieved equally or better from finance or accounting related programs. Economics majors sometimes have difficulty translating the complex, intangible, theoretical field of study to an entry-level job. Many go to law school or business school or are able to find a finance-related job through internships.</p>

<p>Lastly, a tip I’d give is to go to BLS.gov and browse through career pages. The Bureau of Labor Statistics does a great job presenting the education required, general job descriptions, median pay, projected growth, etc for different careers.</p>

<p>My primary concern with Accounting is that it seems, quite frankly, rather boring. I don’t really want to spend 40+ years of my life doing the same, repetitive job. Can you shed some light on this?</p>

<p>These are my current option for bussiness major. In addition, too many student are currently enrolled in Accountant programs. I need a field that would be less competitive. However, leads to better opportunity.</p>

<p>@tim the problem with conceited business majors is that they dont realize anyone can learn excel and powerpoint in about five minutes.</p>

<p>You should just take a class in each to see what you like, I know majoring in econ is the most flexible and highest paying of the 3. Difficulty depends on your personality and what electives you take.</p>

<p>there’s a downside to what Tim said. Accounting, though promising, is likely going to be out of reach after college, because you need a CPA. It’s a tough exam to pass to obtain a CPA and you first need 150 credits, something you can’t really do in just 4 years of college. Those 3 areas of accounting tim listed, Tax, financial, and managerial/cost, all require a CPA. It’s a great area to go in, but maybe not immediately after college.</p>

<p>@fallen- I believe you are mistaken. it seems the big 4 recruit almost exclusively from recent college grads (120 credits with no CPA). experience is gained while young accountants work on the remaining credits required to sit for the CPA exam if desired.
also, there is a world of possibilities beyond public accounting. cost accounting (managerial) takes place within corporations, employs thousands nationwide, and requires no CPA. I’m interested in knowing where you got your information.</p>

<p>Actually I am slightly confused, I only heard that to practice any kinds of accounting, you would need a CPA.</p>

<p>Also, if possible, it’d be nice to list examples of common jobs positions for each of accounting, finance, and econ majors. There’re all good majors but there’s probably also a lot of overlap among them, and sometimes choosing the right major could be simply determining which subject you like more.</p>

<p>This has been addressed several times on these boards. But since I am nice, I’ll help clear up the confusion of lazy people: </p>

<p>"Those 3 areas of accounting tim listed, Tax, financial, and managerial/cost, all require a CPA. It’s a great area to go in, but maybe not immediately after college. "</p>

<p>Not true. Pretty much only the Public Accounting field requires you to be CPA eligible - and you can do financial, tax, and managerial/cost accounting without working in public or being a CPA. </p>

<p>“it seems the big 4 recruit almost exclusively from recent college grads (120 credits with no CPA).” </p>

<p>Not true. Public accounting, generally, recruits exclusively from applicants who are CPA exam eligible. In most states, that means 150/225 credits. </p>

<p>To the OP: </p>

<p>“Economics majors sometimes have difficulty translating the complex, intangible, theoretical field of study to an entry-level job.”</p>

<p>I would never choose economics for this reason, but I guess it depends on the school/quality of program you go to. But for your average school, it’d probably be ill advised unless you supplement it with a good minor. </p>

<p>“My primary concern with Accounting is that it seems, quite frankly, rather boring. I don’t really want to spend 40+ years of my life doing the same, repetitive job.”</p>

<p>That’s a silly primary concern. Do some research into the different career paths open to accounting majors, if you still feel the same way, you may as well cross economics and finance off your list as well, and major in something non-business related.</p>

<p>“My primary concern with Accounting is that it seems, quite frankly, rather boring. I don’t really want to spend 40+ years of my life doing the same, repetitive job.”</p>

<p>It’s people with this mindset that a) become pompous finance majors b) major in something else resenting the fact that they realize, in hindsight, the widespread opportunities involved with an accounting major. Also, “repetitive work” depends on where you end up. Private accounting, especially at the entry level, can be super repetitive, whereas public accounting oftentimes is nearly never the same (minus recurring clients).</p>

<p>To the last two posters, I really don’t appreciate being berated for expressing my current perception of the accounting field. That is completely uncalled for. However, thanks to everyone for giving me some insight into accounting. I probably will be, in the words of the last poster, a “pompous finance major.”</p>

<p>It is true that big 4 do not offer full time positions to those who have less than 150 credits, simply because they do not want you to go to school while working. (they want your entire soul), and it applies to most of the public accounting companies. Whether you agree or not, for an average Joe, accounting is pretty much boring as a subject itself and as a career. If it wasn’t, then there would be no demand for accounting majors, for everyone would just go into accounting and create an excess supply. But, since there is a high turnover in accounting, not mentioning a low pay, there will be always some positions opening up. That is why you always see big 4 seniors and managers leaving public for corporate finance/accounting. </p>

<p>And Trizz, don’t you consider auditing being repetitive? It is true that you audit many companies, and their financial statements are different, but the procedure itself is repetitive and tedious. What about inventory counts? Isn’t that a boring task?</p>

<p>While economics programs are theoretical, they also have some real world courses involved. You can also take finance courses as electives, and depending on the school, you can take 18 credits in electives. So, 6 finance courses can be taken. May not sound like much, but better than none at all right?</p>

<p>I have a question! I am a upcoming sophomore, I have seen many people post here that they have done stuff like: Engineering research, AIDS/HIV Research, Chemical research…What could we (economics majors) do as a ‘research’? I also have a high profile contact if needed in the banking industry (CEO of one of the big four).</p>

<p>@toshtemirov, I thought you only neede to demonstrate a plan have 150 credits before you start working. If you dont start until August, getting 15 credits at a community college the summer after you graduate is not out of the question. There are also positions at thebig 4 that do not require a CPA(valuation, advisory/consulting, …) </p>

<p>Also, to those saying audit isn’t boring. How many hours per day are spent "ticking and tieing</p>

<p>"@toshtemirov, I thought you only neede to demonstrate a plan have 150 credits before you start working."</p>

<p>This is true. You need to have the credits by your start date. </p>

<p>“If you dont start until August, getting 15 credits at a community college the summer after you graduate is not out of the question.”</p>

<p>15-20 semester credits in one summer? That’s alot!
Also, realize that most Bachelor’s programs are 120 semester credits…So in that case you’d need 30 credits.</p>

<p>Yes I was going to say the same thing. Most BS accounting degree programs are 120 so you would need 30 more credits yet some like me I will have 130 so only need 20 more to get to the 150 credits.<br>
Anyway, I know at least 3 recent grads from May who were all hired by the big 4 and none of them had their CPA yet. So they are CPA eligible but not licensed yet. Do any of you know (of course if you have been hired by a big 4 and know for sure), what their plan is with recent grads and getting their cpa? Do they have training programs and the credits count towards the 150, or do they just expect you to take community college classes on the side until you get the extra credits needed?</p>

<p>Working for the big 4 doesn’t mean working in accounting. The big 4 aren’t just accounting firms</p>

<p>mbtbcde2: your post makes no sense IMO. Here is an answer that I cut and pasted from your own post: “Anyway, I know at least 3 recent grads from May who were all hired by the big 4 and none of them had their CPA yet. So they are CPA eligible but not licensed yet.” Does that answer your question? </p>

<p>Thefallenone: Your point is?</p>

<p>^Exactly :)</p>