Are you having trouble deciding between an MBA and a Master’s in Finance? We will look into what you need to know about the differences between each program and how to choose the best fit.
Graduate programs offer many options for those looking to advance their careers in finance. Prospective students, who’ve narrowed their choice to an MBA or a master’s in finance might wonder: “Which is better?” When students are looking into MBA programs with a focus on finance, the question is especially important.
Both the Master of Finance and the Master of Business Administration (MBA) are prestigious graduate degrees that can prepare you for career advancement in the business world.
Each degree prepares you differently for the potential career you have in mind, even though they may have some similarities in terms of curriculum, length, and cost. As a result, choosing which degree to pursue will be heavily influenced by your personal and professional goals.
MBA
Climbing the corporate ladder may require you to earn an MBA. The course material covers a wide range of business-related subjects, including management, entrepreneurship, accounting, statistics, and economics.
MBA programs prepare students to work for financial institutions like banks, nonprofit organizations, start-up businesses, and other well-established corporations in other industries. In general, candidates are anticipated to have strong GPAs from their undergraduate studies and achieve respectable GMAT results.
You can pursue a full- or part-time MBA program, depending on your preference. There is a cost associated with both, even though they both lead to an MBA: a full-time student will not earn much money while they are in school (18 to 36 months). Younger students who recently received their undergraduate degrees and can afford full-time study are most likely to enroll in these programs.
Part-time MBA programs typically come in two flavors:
- Students who have held executive or leadership positions in the workforce for some time are catered to by the Executive MBA (EMBA). These students are 38 on average. Although they can be very expensive, some employers might foot the bill.
- Employees who are full-time workers but are not yet in leadership positions should consider the part-time MBA. To advance their careers, these students enroll in classes after work, in the evenings, or on the weekends.
Master of Finance
The market is getting a little more crowded as more universities offer MBA programs, and people are looking for alternatives. Students who want to focus specifically on finance or fields that are related to it may be good candidates for the Master of Finance degree.
Financial theory, mathematics, quantitative finance, investments, markets, financial reporting and analysis, and valuation are all covered in-depth in these programs that focus exclusively on finance.
Since MF programs do not require any prior work experience, students are typically younger than their MBA counterparts. They are becoming increasingly popular, partly because they are shorter in duration:
- A full-time student should be able to handle the one-year program’s fast-paced and demanding nature. Those who choose this route can quickly gain the skills needed to enter the workforce, but they might have to pass up opportunities like studying abroad and internships.
- It is possible to complete a two-year MF, but there aren’t many institutions that do. Coursework is comparable to that of the one-year program. You can, however, choose to focus on a particular field. As a result, you can conduct more in-depth research and perhaps even finish a placement.
- Some colleges provide an online MF that enables you to continue working and studying. Or your school might have a hybrid remote/in-class program that you can use to finish your coursework.
Graduates can anticipate earning less money than MBA holders, who typically already have some relevant work experience under their belts and have a wider variety of skills. The MF prepares its graduates to work as financial analysts, actuaries, or consultants in industries like trading, investments, or risk management.
What’s the Difference Between a Master’s in Finance and an MBA?
We will talk about five aspects of the differences between a Master’s in Finance and an MBA below.
Curriculum
MBA programs typically provide a broad and thorough business education that covers finance, markets, accounting, entrepreneurship, leadership, and management. With a focus on marketing, finance, entrepreneurship, strategy, management, operations, or information technology, an MBA can be customized to fit a variety of career interests.
Less general than a bachelor’s degree in finance, a master’s degree in finance (or master’s in applied finance) will focus on specific financial topics like financial theory, mathematics, quantitative finance, investments, markets, financial reporting and analysis, and valuation.
Careers
You’ll probably notice that these two graduate programs prepare you for various career paths when you consider the subjects you’ll be studying.
You can choose from a variety of industries and careers as an MBA graduate, including general management, product management, consulting, and executive roles. Anywhere a business leader can influence positive results, you might find yourself working for a hedge fund, corporation, tech startup, or nonprofit.
However, the specialized training found in the MF curriculum equips you to succeed in positions like financial analyst, financial manager, and personal financial advisor. Master’s in Finance graduates are not excluded from any of those fields or positions.
By concentrating on topics like capital markets, investment management, and economic strategy, MF graduates can also find work in securities, commodities, trading, and principal investments. There are also options for corporate or entrepreneurial finance and investment banking.
Although MBA programs, particularly those with a concentration in finance, are excellent preparation for these fields, a focused Master’s Degree in finance may be a quicker and more effective route.
Cohort and Schedule
The people you’ll study within an MBA program may be a little older than those in a Master’s in Finance program because MBA students typically have more work experience than their MF counterparts.
Similarly, since many MBA programs are designed for professionals who are already employed, there are more options for part-time MBA classes and more completion flexibility. MF programs can frequently be finished in as little as one year, as opposed to most MBA programs, which typically take two to three years to complete.
Our full-time Master’s in Applied Finance program at Pepperdine University’s Graziadio Business School takes 12 to 20 months to complete, while our full-time MBA program takes 12 to 15 months.
Your curriculum will consist of 52 to 55 units, depending on the MBA program you select at the Pepperdine Graziadio Business School (part-time or full-time). The 39-unit Pepperdine Graziadio Master of Applied Finance program.
Although every program and university is unique, many MF programs are created for students who have just completed their undergraduate studies. This enables them to matriculate more quickly and make the most of their education.
Cost
When comparing an MBA to a Master’s in Finance, there are a variety of variables that can impact your educational costs, but we’ll start with part-time vs. full-time enrollment. You can keep working full-time and earn more money while pursuing your MBA if you enroll in a part-time program.
However, if you decide to extend your studies—which many part-time MBA programs permit—you may end up enrolled for a longer period of time and paying for school-related expenses during that time. Any financial benefits you might anticipate receiving as a degree holder are also delayed by longer enrollment.
Your income will be restricted while you are in school, but you will graduate sooner if you choose to study full-time. Housing is another important factor. Your university’s housing costs will be taken into account if you decide to enroll full-time and live on campus.
In the end, when you evaluate your overall return on investment, you will take into account your anticipated salary. While you cannot be guaranteed a high starting salary or a significant salary increase after graduation, growth potential in your field is important—from both a financial and a personal standpoint. The price of a degree can vary depending on the school.
Graduate Salaries
According to data from the Financial Times rankings for global MBA and MiF programs, the average salary for graduates from top MBA programs can easily reach $150,000 three years after graduation, while the same figure for MiF graduates tends to be closer to the $100,000 mark.
The work-experience requirements for the degrees, however, also support this. Compared to MiF graduates, MBA candidates hold more senior positions because they have more work experience.
Is a Master of Finance the Same as An MBA?
The fact that both an MBA and a Master of Finance are graduate degrees is the only thing they have in common.
An MF enables students to specialize in a particular field, and the coursework frequently covers financial-related subjects like financial theory, math, quantitative finance, and financial analysis, among others.
In contrast, an MBA focuses on business-related topics and enables students to graduate after studying either full- or part-time.
What is Better, a Master of Finance Or an MBA?
Your goals, financial situation, and experience will determine which degree is preferable, MF or MBA. An MBA might be a better choice for people who are already employed in the business world and want to advance to leadership positions.
People who want to concentrate on the financial sector might want to think about pursuing an MF. However, keep in mind that full-time MF programs typically reduce your earning potential because they require more work. You might be able to work while you study by enrolling in part-time MBA courses.
Further Reading: Engineering Management Vs MBA: What’s The Difference?
How to Choose Between a Master of Finance & an MBA?
Let’s go over a step-by-step process to help you decide between the two degrees.
- Start with your objectives: Do you want to become an authority in the financial field, or do you want to gain knowledge of the various facets of a business before deciding which one you like best to specialize in?
If the first of these goals are in line with your own, MiF programs would be better for you; otherwise, an MBA might be the best option.
- Do you have a lot of work experience? Given that the majority of MiF degrees only require a small amount of work experience, an MBA will better suit your needs if you have some work experience.
However, as opposed to pre-experience MiF degrees, which are geared toward a younger audience, you might look into post-experience MiF courses if you are certain that a Master of Finance is the right choice for you.
Conclusion
After gaining a few years of full-time work experience following an undergraduate degree, MBA programs are designed for professionals seeking a deeper understanding of business fundamentals. Students and professionals who want to specialize in finance are the target audience for master’s in finance (MiF) courses, and they frequently intend to pursue careers in finance after earning their degrees.
Which degree is best for you depends on a variety of factors; a Master’s in Finance vs. an MBA, but when choosing the path that will bring you the most personal and professional fulfillment, take your schedule, work-life balance, and goals into account.
