Are you aiming for a job in a competitive finance area such as investment banking, research, consulting, or investment management but don’t want an MBA? Consider applying for a Master in Finance degree (MFin)!
Although these degrees have some similarities, there are several key differences in terms of time spent in school, tuition, and post-degree career options:
- Unlike traditional two-year MBA programs that strongly prefer candidates with an average of three to five years of work experience prior to applying, MFin programs consider candidates coming directly from undergrad or with just a year or two of full-time work experience.
- Additionally, while most MBA programs last two years and include a summer internship in between those years, an MFin degree typically lasts nine to 18 months, giving students the option to go straight through or to take a traditional summer internship. This can make the actual cost and the opportunity cost of an MFin degree lower than the cost of obtaining an MBA.
- However, because MFin grads generally have little or no full-time work experience prior to matriculation, their post-degree salaries are usually lower than the starting salaries for MBA grads.
- Finally, like international MBA students, international MFin students on F-1 visas at STEM-designated programs may be eligible for an extension of their post-completion Optional Practical Training (OPT) to work in the United States.
Why would you choose an MFin over an MBA?
That depends largely on your goals. While an MBA is a broad, general management degree that allows for specialization in a number of areas and offers a wide variety of career options upon graduation, a Master in Finance degree and its related careers are, as the name suggests, finance focused. Students get a deep background in financial topics such as math, financial theory, quantitative finance, investing, financial markets, and financial analysis and reporting. Consequently, they enter finance-focused careers such as corporate finance, investment banking, wealth management, portfolio management, or actuarial roles, to name a few. According to the US Bureau of Labor Statistics, employment in business and financial operations occupations is projected to grow 8% from 2020 to 2030.
It is important to remember that earning an MFin degree now will not preclude you from gaining admission to an MBA program down the road. If you decide that you want to broaden your horizons—and career options—by earning a more general management degree, you can always apply for an MBA a little later in your career.
Considering an MFin? We at Stratus have compiled a list of programs at top universities. Read Should I Consider a Master’s Degree in Finance? for deadlines and details.
If you would like to receive targeted guidance when deciding whether an MFin or an MBA is right for you, simply sign up for a free 30-minute consultation with a Stratus admissions expert.