If you’re thinking about a future in business or finance, you’ve probably heard people mention getting a master’s degree in finance. It sounds impressive, but is it really worth all the time and money that goes into it? The short answer: it depends.
A master’s in finance can pay off if it aligns with your career goals, experience level, and what you want to get out of it. In this article, we’ll break down the pros and cons so you can decide if pursuing a graduate degree in finance makes sense for you.
Pros of a Master’s In Finance
- Better Credentials: Jobs requiring master’s degrees are on the rise, so taking the time to earn this in-demand credential can prepare you for rewarding roles in the industry.
- Specialized Fields: With a master’s degree, you can find work as a budget analyst, chief financial officer, financial manager, or a personal financial advisor. These roles often pay more and offer even further advancement in your company.
- Higher Salaries: Your earning potential will vary, but the average salary for someone with a master’s is around $86,000 a year.
- Job Stability: The unemployment rate for master’s degrees are lower on average than for bachelor’s degree holders, so earning a finance master’s degree can give you job security.
- Career Change: If you didn’t earn your bachelor’s in finance, you can switch careers with a master’s degree. So if you’re thinking of taking your career elsewhere, a master’s in finance gets you there.
- Networking: Graduate programs can give you access to professionals, internships, and alumni. This can help you with your job search and advance your career.
Cons of a Master’s In Finance
- High Cost: Graduate school means tuition, which can cost over $50,000, plus lost income if you study full-time.
- Not Always Necessary: Practical experience, like internships or real work, can sometimes matter more than a graduate credential, and some finance jobs just need a bachelor’s degree.
- Opportunity Cost: Some programs and schools can get you high paying jobs, but for some students, they might get farther by starting work and gaining practical experience.
How to Decide If a Master’s In Finance Is Right for You
- Define your career goals: Do you want to work in investment banking, asset management, or corporate finance leadership? A master’s degree in finance will get you there. But if you don’t mind general business analysis or other entry-level positions, then a bachelor’s is right for you.
- Pick the right program: Where you go is just as important as your degree. Look at the school’s reputation, alumni outcomes, curriculum, and industry connections they offer. A good program will give you a lot more value for your time and money.
- Consider timing: Some students head right to graduate school, some spend a few years working first. Getting to work first might give you a leg up on your peers in your graduate program, but a master’s might get you a better starting position at work. Choose what works best for you and your situation.
- Weigh cost versus benefit: Take a look at tuition and the lost income it costs to attend your ideal graduate program, and compare it to the expected salary and job type you’ll have after graduation. Is the money worth it?
- Get more than a degree: Your graduate program should offer more than just courses. Look for programs that have internships, real-world projects, a strong alumni network, and exam prep for professional credentials, like the Chartered Financial Analyst [LINK TO “How Do I Make My Finance Degree Stand Out?”].
Is a Master’s in Finance Worth It?
Like we said before: it depends. Your goals, the program you choose, and how you use it can determine what you get out of your master’s degree in finance. A master’s can open doors to specialized fields, higher salaries, and better networks. On the other hand, a master’s can be expensive, time-consuming, and unnecessary for your career path.
Right now, talk to professionals or alumni who have already earned a master’s degree. They can tell you a lot more about their experience in school and in their career. Their advice can help you decide if a master’s degree is the path you want.
Citations
Harvard Business School Online — 7 Finance Skills Employers Look for on a Resume
Capella University — Why a Portfolio Is Important for Your Career
BYU–Idaho — Finance Student Resources
CFA Institute — CFA Program
CFA Institute — CFA Program
CFP Board — Resources for Students
Global Association of Risk Professionals (GARP) — Financial Risk Manager (FRM)