Finance involves the management of funds for businesses and organizations. It includes activities such as investing, budgeting, borrowing, lending, saving, and forecasting. Moreover, it focuses on how money grows, how it should be managed and how it works.
If you like the idea of dealing with numbers and solving simple to complex financial related problems? Or are you generally interested in cash flow, capital markets, and investments? If this is the case, you should definitely consider doing a finance degree. Read on for more information about the course, possible career paths, and specialization.
Finance is the management of financial activities such as budgeting, saving, borrowing, and lending. Generally, finance is divided into three branches, which include personal, corporate, and public finance.
Students cover the basics of accounting, economics, statistics, taxation, and business law. Moreover,u00a0 they gain an in-depth understanding of investments, stock trade, bonds, as well as the financial aspects implemented by organizations, companies or government agencies. In general, students learn the principles of economic and security management as well as explore the influence of money and banking systems on commercial activities.
In most universities, finance programs are available under the Bachelor of Science. Mostly, finance courses are provided along with other related disciplines such as accounting, economics, or business. Find the best universities for a finance degree here.
Finance is often called a math-focused course. Therefore, applicants are required to have a strong mathematical background, usually from high school. Other universities consider the experience in business-related studies an added advantage.
Additionally, computer skills are also essential as the discipline involves the use of various computerized software for financial computation. Other key areas that may provide added advantage include psychology and sociology, as this helps in understanding human behavior, which plays a significant role in helping to understand financial concepts and consumer behaviors.
Finance provides students with various options for specialization. Typically, the first and second years of study focus on equipping students with a general overview and foundation of the program. Later, students can pursue specific areas within the field.
Below is a list of topics that youu2019re most likely going to come across:
Here is a list of finance specializations:
Financial Investment Management
This program aims to help students comprehend how security markets operate, causes that influence security valuation, distinguishing between various investment types, and understanding investment risk and return principles. Topics covered include security market operations, investments, portfolio asset allocation, economic environment analysis, and evaluation of equity as well as fixed-income securities.
Corporate Finance
In this program, students are introduced to financial theory and practices used by firm managers to achieve their goals and maximize corporate shareholder wealth. Topics covered include analysis techniques of financial statement and cash flows, valuation methods for debt and equity capital, risk and rate of return theory, cost of capital, capital project budgeting decisions and cash flow estimation, optimal capital structure, and dividend policy.
Financial economics
Economics is a social science which deals with studying human behaviors concerning supply and demand. Economics usually deals with microeconomics, which is the study of a small sample of a country and macroeconomics, which is the study of the nation at large. In this program, students grasp the theory of logic microeconomics and macroeconomics as well as consumer and producer behavior.
International finance
International business deals with the global economy and all economic variables which affect it. Students cover topics on international taxation, international trade policies, international financial reporting, foreign direct investment, global markets, and international monetary systems. Additionally, students can choose to study the discipline in developing economies or special financial systems.
Real Estate
Real estate is a vast industry with a lot of dynamics and is linked strongly to the construction industry. Some of the topics learned in this specialization include capital markets, commercial markets, design and the economics of the real estate market. Students learn how to analyze and evaluate the variables of the real estate market.
Capital Markets
This program provides students with a deep understanding of the fields of debt and equity. Those that get into this path will get to work in investment banks, commercial banks, and other lending facilities.
Behavioral finance
In this program, students learn how to use psychological, social, and economical techniques to determine why individuals and groups behave the way they do. In general, this specialization aims to determine why financial industries make bad decisions that lead to inefficiencies or market crashes.
Financial mathematics
This course enables students to develop highly developed computational and mathematical skills. Topics covered in this specialization include advanced analytical models, computational techniques, interest rate modeling, valuation of derivative securities, among others.
Future Markets
If you are interested in commodities and predicting what their next variation of values will be, then the future market is an excellent area of specialization. It involves understanding what the factors are that make commodity prices fluctuate causing all the sharp prices that affect consumers.
Finance majors have the option of choosing a career in various industries. This is because all industries need finance graduates to assist them in one way or the other. Finance majors can choose to work in accountancy firms, management, banking, business management, consultancy, risk management, and audit or in the government. Below is a list of finance jobs that graduates can venture into:
1. Accountant
Accountants are experts who are in charge of the daily financial running of companies or industries. Their duties span from basic accounting and taxes to managerial work. They are responsible for providing financial information, managing, researching, and evaluating financial data as well as creating reports. Moreover, they prepare assets, liability and capital account entries by collating and assessing account information.
2. Financial analysts
These professionals identify the financial status of a company or organization by comparing and analyzing results with plans and forecasts. Moreover, they improve the financial condition of a company by evaluating results, observing variances, detecting trends and suggesting necessary actions.
3. Financial advisor
These are professionals who mostly work in sales and help people to find new ways in which to invest their money. They advise clients about plans and strategies concerning insurance coverage, investment planning, as well as cash management.
4. Credit analyst
Credit analysts are responsible for researching and advising on the risk of offering credit services or loans to companies or people. They mostly work in banks and debt financing institutions.
5. Actuary
These professionals are responsible for evaluating the financial costs of risk and uncertainty through the use of mathematics, statistics, and financial theory. They forecast risks for clients or businesses and help them to generate policies that reduce the cost of the risk, with Actuaries work in banks, insurance companies, and accounting firms.
6. Teachers
Teachers are responsible for preparing lesson plans and for educating students. Additionally, they assign homework, grade tests, and monitor the performance of students, and so on.
7. Budget analysts
These professionals are responsible for analyzing budget proposals, developing a budget, and ensuring that these budgets comply with the relevant laws and regulations. Typically budget analysts work with program and project managers to ensure an organizationu2019s spending is within budget limits.
8. Real estate agents
Real estate agents are responsible for assisting their clients to buy, rent, or sell properties. They provide recommendations and advice about market conditions, perform walkthroughs and offer guidance throughout the buying, selling, or leasing properties process.
9. Financial lawyers
Financial lawyers are responsible for helping clients with financial matters spanning from tapping debt markets to assisting corporations with streamlining businesses. These professionals may specialize in banking, real estate finance, project finance, private equity finance, and so on.
10. Forensic accountant
Forensic accountants are responsible for investigating financial inconsistencies and inaccuracies such as fraud or financial disputes, misconduct, or misrepresentation. They evaluate financial documents and reports using accounting, auditing, and investigative skills.
11. Management consultant
These professionals are responsible for providing assistance to organizations to solve issues, create value, and maximize growth to improve business performance. They identify strategic, cultural and management solutions to ensure the organization is functioning effectively.
12. Chief financial officer (CFO)
CFOs are responsible for managing a companyu2019s or organizationu2019s financial reporting. They evaluate business risks and opportunities as well as supervise lower level, financial managers. Additionally, they set and track financial goals, objectives, and budgets.
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