A bachelors degree in business is excellent for entry-level and mid-career business professionals. However, if you want to further your education and expand your career opportunities, you are likely considering graduate school.
Do you dream of becoming a successful entrepreneur or making strides in the field of international business? If so, you may look to earning your MBA (Master of Business Administration) degree.
Obtaining an MBA is a common path for many people interested in the finance world. However, its not your only option. Have you ever considered a Master of Science in Finance degree?
Below, well explore the two programs and their differences. Reading through this guide will help you select the right degree based on your career goals, salary expectations and other essential factors.
Choosing between an MBA or a Masters in Finance degree is a big decision that depends largely on your career goals and interests. As someone considering advancing my education, I wanted to deeply research the differences between these two popular graduate degree options to determine which one may be the best fit for my needs.
In this article, I’ll provide a comprehensive overview of MBA and Masters of Finance programs so you can make an informed decision on which graduate degree aligns with your professional objectives.
A Quick Summary of MBA and Masters of Finance
Before diving into the details, here is a high-level snapshot of each degree
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MBA – Master of Business Administration. This is a broad graduate degree covering topics like accounting marketing, operations, and finance. The focus is on general management and leadership skills.
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Masters of Finance – Also called Master of Finance or MiF. A specialized graduate degree concentrating solely on finance topics like corporate finance, investments, financial modeling, and financial analysis.
Let’s explore the ins and outs of each degree more thoroughly
MBA Degree Overview
The MBA is one of the most widely recognized and respected business degrees. Here’s an overview:
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Duration – Typically 2 years full-time or 3+ years part-time.
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Format – Available full-time, part-time, online, executive MBA, and more. Lots of flexibility.
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Cost – $30,000 to $200,000+ depending on school/format. Executive MBA is typically most expensive.
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Curriculum – Broad curriculum covering leadership, finance, accounting, marketing, operations, strategy. Takes a general management perspective.
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Career Outlook – Strong career prospects and high salaries. Average MBA grad salary is $115,000.
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Ideal For – Experienced professionals looking to move into leadership roles across diverse business functions.
The MBA opens doors to opportunities across many industries and job functions. It develops well-rounded management skills that translate into leadership roles.
Masters of Finance Degree Overview
The Masters of Finance is a more targeted, finance-focused degree. Here are the key details:
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Duration – Typically 1 year full-time. Some 2 year options available.
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Format – Primarily full-time. Some online/hybrid options emerging.
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Cost – $30,000 to $70,000. Lower than MBA since shorter duration.
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Curriculum – Specialized finance curriculum including corporate finance, financial modeling, investments, derivatives, statistics.
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Career Outlook – Finance-specific roles like investment banking, equity research, FP&A. Average salary $80,000.
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Ideal For – Those looking to specialize in finance and accelerate career within finance industry.
The Masters of Finance zeroes in on high-level finance skills to prepare graduates for finance-specific roles.
Key Differences Between MBA vs Masters in Finance
Now that we’ve covered the basics, let’s compare some of the key differences between the MBA and Masters in Finance:
Duration
- MBA programs are generally 2 years full-time or 3+ years part-time
- Masters of Finance programs are typically only 1 year full-time
The MBA requires a larger time commitment. The MiF gets you workforce ready faster.
Cost
- Top MBA programs can cost over $200,000
- MiF programs range from $30k-$70k since only 1 year
The MBA represents a bigger financial investment. MiF is more affordable.
Curriculum
- MBA curriculum is broad covering leadership, strategy, marketing, operations, etc.
- MiF focuses narrowly on high-level finance topics
MBA develops general management skills. MiF builds finance expertise.
Career Prospects
- MBA graduates land leadership roles across industries
- MiF graduates fill specialized finance roles in finance industry
MBA provides more career flexibility. MiF accelerates finance career.
Work Experience
- MBA students typically have 3-5 years work experience
- MiF students often come straight from undergrad
MBA leverages work experience. MiF focuses on Finance academics.
As you can see, the MBA takes a broader approach while the Masters in Finance is specialized. Keep this key distinction in mind.
Which Degree Is Right For You?
Deciding between an MBA or Masters in Finance depends primarily on your career goals and interests.
Here are a few key questions to ask yourself:
- Do you want to specialize in finance or general management?
- Are you interested in leadership/executive positions or hands-on finance roles?
- Do you have 3-5 years of work experience to leverage in an MBA?
- Does a 1 year accelerated program appeal more than a 2 year commitment?
Think deeply about your aspirations. Align on your motivation for pursuing a graduate degree. This clarity will dictate which option may be a better fit.
Here is a comparison of ideal candidate profiles:
MBA Candidate
- Interested in general management and leadership roles
- Seeking career pivot or advancement in current industry
- Has 3-5+ years work experience to leverage
- Wants broad business knowledge and network
Masters in Finance Candidate
- Wants to specialize in corporate finance, investments, etc.
- Focused on finance-specific roles like IB, equity research
- Comfortable with quantitative curriculum
- Seeking faster path to workforce at lower cost
As you weigh these factors, consider reaching out to graduates of each program or speaking with admissions officers. This can provide great insight from experienced professionals.
Hybrid Options
One alternative to consider is combining programs. Some options include:
- MBA with Finance concentration – Gain broad MBA skills plus finance focus
- MiF with CFA – Specialized finance degree and gold standard certification
- MiF + MBA – Back-to-back degrees for widest skillset
These hybrid approaches blend the benefits of both programs. It provides amazing education and career preparation.
Which Program Will Give You the Highest ROI?
Return on investment is another critical factor when choosing a graduate degree. Let’s compare the ROI of each program:
- The average MBA graduate earns a starting salary of ~$115,000
- Average starting salary for MiF graduates is ~$80,000
- Top MBA programs cost $200k+ while MiF ranges from $30k-$70k
Based solely on short term salary bump, the MiF likely provides higher ROI given its lower cost and accelerated timeline to workforce entry.
However, the MBA provides greater earnings potential long-term as graduates move into executive leadership roles. So you must factor in short term vs long term horizons based on your own career plan.
Should You Pursue an MBA, Masters of Finance, or Both?
As you can see, both degrees offer tremendous value and can significantly advance your career. The key is aligning your choice with your specific aspirations and interests. Take the time to deeply analyze your motivations, skills, experience and objectives in order to make the best decision.
The MBA takes a general management approach which opens doors across industries and functions. The specialized MiF accelerates your finance expertise. One is not necessarily better than the other. The right choice depends on your personal career goals and situation.
Evaluate your own motivations and professional goals, and determine which degree best fits your needs and interests. Doing this diligent self-reflection will help you make the best decision and maximize your graduate degree investment.
If you remain torn between the options, consider a hybrid combination programs to expand your skillset. With proper planning, both degrees can provide amazing education and career opportunities.
MBA vs. Master of Science in Finance — Key Differences
Explore the key differences between an MBA program and a Master of Science in Finance program below:
Think of an MBA program as a large oak tree and a Master of Science in Finance program as a single branch. They both relate to business, but a Master of Science in Finance program is much more specialized. An MBA program covers all things business, while a Master of Science in Finance program focuses on honing knowledge of the finance sector.
You can get a better idea of what each program offers by exploring some of the most common courses:
Common MBA Courses
- Accounting Concepts for Managers
- Operations Management and Quality Enhancement
- Marketing Management
- Risk Management and Legal Compliance
- Operations and Supply Chain Processes
- Data Analytics for Business
- Organizational Behavior and Leadership
Common Master of Science in Finance Courses
- Financial Modeling and Analytics
- Theory of Finance
- Estate Planning
- Portfolio Management
- Global Finance Strategy
- Financial Options and Futures
- Advanced Financial Risk Management
- Public Finance
- FinTech
Standard MBA programs take two years to complete. On the other hand, a standard MSF program only takes one year to finish. However, your experience may vary slightly, depending on the specific program.
Most students view the MBA program as the “traditional” route to take when applying for business graduate school. It’s certainly an acceptable one, but it’s not your only option.
Many students are turning to specialized MSF programs to continue their business education and make themselves stand out in a competitive market.
The MSF degree is growing in popularity due to multiple factors. One reason is the increasing popularity of cryptocurrency, which demands more specialized knowledge. Another factor is the increased interest in financial valuation and analysis among major corporations.
According to U.S. News & World Report, employers love potential employees with Master of Science in Finance degrees. In one study, the majority of employers wanted to increase or match the number of recent finance graduates they took on in the year before.
So, if you’re looking for a unique way to distinguish yourself in the competitive finance job industry, a Master of Science in Finance degree might be the way to go.
An MBA program focuses on more comprehensive knowledge, while a Master of Science in Finance program involves more specialized knowledge.
The Master of Science in Finance program has a (traditional) faster completion rate, so you can enter your long-term career more quickly.
Whichever program you decide to pursue, you can complete it on your own terms. Before you start either degree, you should evaluate the time you have available and find a program that works with your schedule. Otherwise, you risk falling behind and failing to complete the program altogether.
If youre passionate about obtaining a solid education in finance, you can adjust your schedule to make it work and reap the rewards in the long run.
MBA and Master of Science in Finance Admission Requirements
If one of these programs has captured your interest, you may be wondering how to get accepted into one.
There isnt a single formula to memorize thatll land you a spot in a program. Every institution will consider and prioritize different factors. Even then, all graduate students come from unique backgrounds and take different paths toward acceptance.
In general, youll have to submit the following information when applying for an MBA or Master of Science in Finance program:
- Proof of superior academic ability (your GPA from your undergraduate studies)
- GRE/GMAT test scores (sometimes waived if you have enough relevant work experience)
- Experience (professional work history, internships, organizational involvement and summer jobs)
- Letters of recommendation from industry professionals (your past/current bosses or undergrad professors)
Many programs will also require a personal statement and interview with one of the institutions board leaders.
Familiarize yourself with your institutions application process so that youll know what to expect. Reach out to the schools admissions representatives and speak with past applicants. This way, youll get a better idea of the application process and learn how to improve your chances of getting accepted.
Specialized Master’s vs. MBA | You need to know THIS before you make a decision
What is the difference between an MBA and a Master of Finance?
Applicants for the MBA Program have a variety of undergraduate backgrounds, including engineering, business, liberal arts, etc. Master of Finance programs typically prefer applicants with solid academic foundations in finance gained through a Bachelor of Finance degree.
What’s the difference between an MBA and a Master’s in economics?
It comes down to figuring out the types of skills you are trying to get and what job you see yourself pursuing. MBAs are more expensive to obtain than a master’s in finance or economics. MBA programs are broader, while master’s programs in economics and finance are deeper.
What is a Master’s in finance?
A Master’s in Finance is a specialized degree that focuses on the theory and practice of finance, such as financial analysis, valuation, investment, risk management, and corporate finance. MSF programs typically require one year of full-time study, although some part-time or full-time online accredited MBA programs may be available.
Is an MBA more expensive than a Master’s in finance or economics?
MBAs are more expensive to obtain than a master’s in finance or economics. MBA programs are broader, while master’s programs in economics and finance are deeper. A master’s in finance or economics typically requires a stronger background in mathematics. Median salaries may be higher for MBAs, depending on the job.
