Are you interested in obtaining your Master’s degree in financial engineering, otherwise known as computational finance, quantitative finance, mathematical engineering or financial mathematics? If so, a logical question is what you should study at the undergraduate level to prepare yourself for this rigorous advanced degree.
Since financial engineering is a multidisciplinary field of study, you have several options that would all be suitable for undergraduate majors. In most cases, you will also need to take some courses outside of your major to prepare yourself for graduate study in this finance industry specialization. Let’s take a look at some of your best choices for what to study if your goal is to become a top-level financial analyst who successfully completes an advanced degree.
Resource: 25 Great Master of Financial Engineering Programs
Mathematics or Applied Mathematics
Mathematics is the major course of study that satisfies the vast majority of the typical prerequisites for earning an advanced degree in computational finance. Some of the usual required classes at the undergraduate level are as follows:
- Statistics
- Probability theory
- Multivariate calculus
- Linear algebra
- Differential equations
- Numerical analysis
- Statistical and econometric modeling
- Accounting
- Corporate finance
- C++ computer programming
- Macroeconomics
- Microeconomics
Since so many math classes are required for success with quantitative finance, mathematics is a smart choice of undergraduate majors. If you don’t declare a major in math, you might as well at least complete a mathematics minor.
Computer Science
If you study the requirements for earning a bachelor’s degree in computer science, you’re likely to find that many of the same mathematics classes mentioned above are also on the list. Computer science is a directly applicable field of study since financial analysts must be adept at using computers to extract and analyze data to make the most accurate possible financial forecasts.
In the current job market, computer science is also a field of study that tends to better prepare a person for the work force after graduation from college. So if you think you might like to begin working in between getting your bachelor’s and your master’s degrees, computer science might be the best choice of majors for you. Just be sure to load up on math, economics and finance classes at every opportunity so you satisfy all your other prerequisites.
Finance
It makes sense that you’ll need a thorough understanding of financial principles if you plan to become a financial analyst. If you decide to pursue this major, you do have to plan your courseload carefully to ensure that you allow space in your schedule for all the math and other classes you’ll need to take.
Economics
Financial analysts need to have an outstanding grasp on the principles of both microeconomics and macroeconomics. The more economics classes you can take, the better prepared you will be for studying computational finance. Again, the biggest caution with this major is allowing space in your schedule for all the math, computing and finance courses that are not typically a required part of an economics bachelor’s degree program.
With all of the above in mind, it’s a great idea to do some soul searching regarding your own talents, ideal courseload, interests and goals. Keeping your personal objectives in mind, we hope you now have a clearer understanding about how to decide which is the best bachelor’s degree for obtaining your master’s degree in financial engineering.
