In the fast-paced field of finance, an advanced degree may be one consideration to help you stand out as a job applicant and provide skills and knowledge beneficial in leadership roles. But in today’s world of evolving financial regulations and workplace requirements, is a master’s in finance worth it?
The true value of a finance master’s degree depends on your specific career goals.
“In the past decade, there is a lot of demand for people in emerging areas of finance, such as FinTech and digital assets,” said Sal Sadiq, an adjunct finance instructor at Southern New Hampshire University (SNHU). “A master’s degree can open doors into these areas of finance. And, of course, the traditional areas of finance continue to exist, and a master’s degree can open new doors.”
So, is a master’s degree in finance worth pursuing? To make this decision, you’ll need to consider what this credential could do for your career and your life.
What is a Master’s Degree in Finance?
A master’s degree is a type of graduate degree that can help you build advanced knowledge in your chosen field. Master’s degrees are typically two-year programs that follow a bachelor’s degree and dive deeper into specific subject matter.
A master’s degree in finance can help you explore different areas of the field in more detail and build key analytical and quantitative skills, said Sadiq.
Every finance master’s degree program is unique, but they typically include courses in financial analysis and risk management. At SNHU, for example, graduate-level finance courses include:
- Risk Management
- Financial Modeling
- International Corporate Finance
- Money and Capital Markets
- Quantitative Analysis for Decision-Making
You may also be able to choose a concentration for your finance degree and dive deeper into an area of specialization. With a finance master’s degree from SNHU you can choose to focus on:
- Corporate Finance: Take on the challenges of today’s complex and ever-changing corporate financial environment.
- Investments: Analyze assets, debt, equity, securities, investment strategies and portfolios.
Who Can Earn a Finance Master’s Degree?
While many students who enter finance master’s degree programs already have a background in business, accounting or other financial fields, it’s not required, said Sadiq.
As long as you have a bachelor’s degree, you can apply for and work through a master’s in finance.
Sadiq, for example, said he earned an undergraduate degree in psychology with a minor in economics and business administration before earning a master’s in finance. Today, he has more than 25 years of experience in the regulatory industry, overseeing capital-raising transactions in the public and private sectors.
Is a Master’s in Finance a Lot of Math?
Earning a finance master’s degree does require some math. Most finance degrees include a mathematics and statistics course, in addition to courses such as financial modeling and economics.
Sadiq said basic math and algebra skills are typically enough to complete the courses needed for a finance degree. Analyzing and understanding financial data is also crucial to success in the finance field.
Is a Master’s in Finance Better Than an MBA?
If you’re interested in an advanced finance degree, you could pursue a Master of Science (MS) in Finance or a Master of Business Administration (MBA) in Finance. While both degrees are graduate-level programs that can prepare you for financial careers, they do differ.
According to Sadiq, while an MS degree dives deep into different areas of finance, an MBA can provide a broader perspective beyond finance alone.
In addition to industry-specific technical skills, MBA programs leverage real-world learning, cultivate general business knowledge and provide in-demand soft skills such as leadership, communication and collaboration.
The MBA in Finance at SNHU, for example, includes courses about leading organizational change, innovation and business strategy, and measuring success in an organization.
Whether you earn an MBA or a traditional master’s degree in finance, you can prepare to start or advance a finance career. Determining which finance degree is better is a personal decision that can vary depending on your specific career goals.
What Can You Do With a Master’s Degree in Finance?
Earning a master’s in finance can help you prepare for a variety of careers working for private companies, government agencies and nonprofit organizations.
According to the U.S. Bureau of Labor Statistics (BLS), some of the finance jobs available to master’s degree holders include:
- Budget Analysts: Budget analysts help organizations, government agencies and private companies plan their finances, from analyzing financial data to evaluating budget proposals, according to BLS.
- Chief Financial Officers: As a chief financial officer, you could work as part of a team of executives to lead an organization’s financial health and reporting, according to BLS.
- Financial Analyst: Financial analysts help businesses and individuals make financial decisions to build profits. This work includes assessing the performance of stocks, bonds and other investments, according to BLS.
- Financial Managers: Financial managers create financial reports, lead investment activities and help manage the long-term financial goals of an organization, according to BLS.
- Personal Financial Advisors: As a personal finance advisor, you could advise individuals on investments, insurance, mortgages, estate planning, taxes, retirement and planning for financial goals, according to BLS.
How Much is a Master’s in Finance Worth?
Earning a master’s degree in any field requires a commitment of time and money. However, data shows that the return on investment of a master’s degree can be significant in the world of finance.
In-Demand Credential
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According to BLS data, the number of jobs requiring a master’s degree is on the rise. Jobs requiring a master’s degree are projected to grow 11.3% between 2022 and 2032, while jobs requiring a bachelor’s degree are expected to grow 6.7% over the same period, according to BLS.*
Jobs in the finance industry, specifically, are also expected to see significant growth over the next decade.
Employment of personal financial advisors, for example, is projected to grow 13% from 2022 to 2032, according to BLS data.* Jobs for financial managers and financial analysts are expected to grow 16% and 8%, respectively, over the same period, BLS data shows.*
Salary Potential
Master’s degree holders also have a higher earning potential than workers with a bachelor’s degree, according to BLS data.*
In 2023, workers with a master’s degree brought home median weekly earnings of $1,737, compared to $1,493 for bachelor’s degree holders.*
And within the finance field, specifically, salary potential is strong.*
Personal financial advisors earned a median annual salary of $99,580 in 2023, while financial and investment analysts earned a median salary of $99,010 that same year, according to BLS.*
The median annual wage for financial managers was $156,100 in 2023, according to BLS.* Top executives, including chief financial officers, earned a median wage of $206,680 the same year, BLS data shows.*
Job Stability
Earning a finance master’s degree can also give you more job security.
According to BLS data, the unemployment rate for master’s degree holders in 2023 was just 2%, lower than the average for bachelor’s degree holders (2.2%) and associate degree holders (2.7%).*
Is a Master’s Degree in Finance Right for Me?
A master’s degree in finance can be a key credential when applying to high-level jobs in the field or seeking a promotion. But it does require commitment and investment. Before enrolling in a finance degree program, make sure the degree coursework aligns with your professional goals.
“A master’s degree in finance requires a lot of work and diligence,” said Sadiq. “It is often difficult juggling a career and family responsibilities. But there will be many long-term opportunities that can open up, and it can yield long-term dividends for the student.”
Danielle Gagnon is a freelance writer focused on higher education. She started her career working as an education reporter for a daily newspaper in New Hampshire, where she reported on local schools and education policy. Gagnon served as the communications manager for a private school in Boston, MA before later starting her freelance writing career. Today, she continues to share her passion for education as a writer for Southern New Hampshire University. Connect with her on LinkedIn.