The fields of economics and finance are similar, but there are differences. Deciding on which field to pursue academically should be a thoughtful, researched choice. Many prospective higher education students are concerned with the differences between obtaining a master’s degree in finance or economics. So, what are the major differences in the master’s degrees for these two fields?

Differences in Direction of Study

Professionals in the finance field focus more on the study of such financial factors as interest rates, markets, price trends, and risk quantification. Finance also includes more study on such subjects as assets and liabilities, accounting, and interpretation of business financial statements.

Economics focuses on analysis of how specific economies work, particularly considering services and goods, consumption, and production. The findings have a direct impact on the decisions of legislatures and governments at all levels in terms of taxation and regulation, as well as spending. Economics students study such things as supply and demand curves to identify the trends in financial markets for limited resources, GDP, and inflation.

Differences in Coursework

Typical courses in a master’s in finance curriculum include advanced corporate finance, financial statement analysis, investment analysis and banking, financial regulation, corporate finance strategy, and credit risk modeling.

Economics master’s students study courses such as graduate level macroeconomics and microeconomics, government regulation, public policy, open market policies, international trade and industry-specific courses such as labor, health, government or international trade economics.

Differences in Jobs after Graduation

Finance master’s graduates hold a variety of positions, including work with financial banking institutions and financial service companies. Careers for a finance graduate include credit analyst, loan officer, mortgage banking, insurance agent, investor relations executive. For most positions at the majority of companies, the master’s degree will be a requirement for management positions. Forbes has estimated the median pay for master’s graduates in the field of economics is estimated at $115,000. The higher salaried jobs were typically concentrated in the federal government positions requiring a master’s degree or higher.

In addition to jobs with local, state, and federal government offices, economists can also find positions with research and development firms, consulting firms, and universities. Likely job titles include chief economist, deputy chief economist, senior economist, and economics affairs officer.

From both backgrounds, a career in academia is another option, although for this particular path, an economics background is often preferable. The average salary for a graduate with a master’s degree in finance ranges from between $64,750 and $170,000. The higher salaries in the finance field were typically found in the private sector, with large corporations offering significantly higher salaries.

To determine which master’s degree is the right fit, consider the types of courses a student might take, the job descriptions for each field, and the types of jobs available for each of the fields. Whatever the decision, a master’s degree in economics or a master’s degree in finance provides a variety of opportunities throughout the public and private sectors.

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