As a student of finance looking to make a successful career in the field, you may be confronted with the choice between a Masters in Finance vs MBA. While an MBA was considered an important prerequisite for a career in the financial sector in the past, a number of newer options are coming up now. These options tend to attract the younger crowd because of the lower costs involved and the relaxation in terms of work experience.
One such degree that a lot of younger people are choosing over a traditional MBA is a Masters in Finance. There are some significant differences between the two degrees, but before trying to delve deeper into those, it is important that you get an understanding of the basic features of both these degrees.
Masters in Finance
If you are looking to specialize in the field of finance, a Masters in Finance degree may be more in line with your career aspirations than a regular MBA. One of the main distinguishing factors between these degrees is that a Masters in Finance is more heavily involved in the specificity of the field. The core subjects of such a degree are more in line with financial theory, financial reporting, analysis, investments, quantitative finances, mathematics, and so on. There is little to no emphasis on the wider range of subjects that are covered under an MBA program. Here are some of the main features of a Masters in Finance degree.
Average Time It Takes to Complete
A Masters in Finance degree usually takes lesser time to complete than an MBA program. Most Masters in Finance degrees can be finished within a year, which make them a popular option for people who want to dive headfirst into the profession by accumulating all the required knowledge in a shorter period of time. This degree also involves an internship – for most programs – which needs to be completed in order for you to receive the degree.
Requirements to Enroll
The requirements to enroll in a Masters in Finance degree are usually more relaxed than an MBA program. For example, most people who apply for this degree have little to no work experience. This program offers a great platform for people who want a career in finance and want to update their skill set before gaining more work experience. The basic requirements include a good GPA, a personal statement, essays, letters of recommendation and so on.
Average Cost
The average cost a Masters in Finance program will automatically be lower than the cost of an MBA – which will be discussed later – as the program is usually shorter by a year. The average cost stands between $10,000 and $25,000, depending on the school and the program that you choose to apply for. You may be able to secure some fee waivers but they are quite limited.
Average Salaries
The average salaries for graduates with a Masters in Finance degree are usually lower than the salaries for an MBA graduate. On average, the figure stands at approximately $80,000, but it can differ on the basis of the school that you received your degree from and the amount of experience that you have in the field.
MBA
The usual route adopted by business executives to climb up the professional ladder is an MBA degree. This is an intensive course that requires you to study a wide range of topics, ranging from finance and accounting to human resources and communications. An MBA can get you ready for a job in a wide range of industries, starting with the business sector and banking industry to non-profits or government agencies. An MBA can either be a full-time course or a part-time one that you pursue along with your regular job. There is also an option to opt for an executive MBA, if you already have a good amount of experience in the field and want to take your skill set to the next level.
Average Time It Takes to Complete
One of the major factors to consider before reaching a conclusion on the Masters of Finance vs MBA debate is the amount of time you have to dedicate to the course. If you opt for a full-time MBA, you can expect to complete it in two years. A part-time degree may take longer, depending on how quickly or slowly you receive the required credits.
Requirements to Enroll
The enrollment requirements for an MBA are usually more extensive than for a regular master’s degree. You will be required to show a good GPA and academic credentials, in addition to GRE or GMAT scores. While both of these are acceptable, GMAT scores may be more widely accepted by the top institutions in the country. You will be required to submit your resume, a personal statement, essays and letters of recommendation to make a strong application.
Average Cost
An MBA is an expensive degree. The average cost of completing an MBA program ranges between $100,000 and $200,000, depending on the program you choose and the college or university you decide to attend. This is a huge initial investment as fee waivers are not as common at this stage, unless you are applying for an EMBA that is being financed by your employers. However, the next point may offset the high costs involved.
Average Salaries
Your earning potential can increase exponentially once you have received an MBA degree. MBA graduates usually command a better salary than students who have finished their Masters in Finance. The average salary differs from state to state, with MBA graduates in California earning an average of over $100,000 each year.
Wrap-Up
There is a significant difference between the two degrees and when you are looking to make sense of the Masters of Finance vs MBA debate, you should pick one that suits your current qualifications and future aspirations equally. A masters degree – whether it is in finance or business administration – is going to be an asset down the road, so even if you feel like the costs are high at the moment, you should consider the program that suits your needs best.