MBA vs Masters of Finance: Which Graduate Degree Should You Pursue?

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

• 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.

• 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:

• Duration – Typically 2 years full-time or 3+ years part-time.

• Format – Available full-time, part-time, online, executive MBA, and more. Lots of flexibility.

• Cost – $30,000 to $200,000+ depending on school/format. Executive MBA is typically most expensive.

• Curriculum – Broad curriculum covering leadership, finance, accounting, marketing, operations, strategy. Takes a general management perspective.

• Career Outlook – Strong career prospects and high salaries. Average MBA grad salary is $115,000.

• 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:

• Duration – Typically 1 year full-time. Some 2 year options available.

• Format – Primarily full-time. Some online/hybrid options emerging.

• Cost – $30,000 to $70,000. Lower than MBA since shorter duration.

• Curriculum – Specialized finance curriculum including corporate finance, financial modeling, investments, derivatives, statistics.

• Career Outlook – Finance-specific roles like investment banking, equity research, FP&A. Average salary $80,000.

• 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.