mba vs phd in finance

MBA vs PhD – Which Advanced Degree Path Is Better?

In the ever-evolving professional landscape, the pursuit of higher education remains a popular route to advance your career. But how do you choose between MBA vs PhD?

When it comes to MBA vs PhD, an MBA is for those seeking to climb the corporate ladder, transition into management roles, or launch their own businesses. A PhD is geared towards those passionate about research and academia.

In this blog post, we dive into the unique benefits and opportunities that each of these advanced degrees offers.

From the practical business acumen and leadership skills gained in an MBA program to the deep expertise and research contributions made by PhD holders, the choice ultimately hinges on your long-term goals and personal ambitions.

We’ll explore these two distinct paths, and learn how to make the best decision for your future success.

MBA vs PHD – In A Glance

What Does a PhD Get You? Pros and Cons

A PhD , the highest academic degree achievable, can open numerous doors in the job market, enabling graduates to advance in their careers.

Unlike an MBA, which primarily focuses on corporate and management aspects, a PhD offers expertise in a specific field through rigorous research and study.

As a PhD student, your goal is to contribute new knowledge to your field, be it economics, finance, accounting, or any other discipline, by crafting a thesis that contains original research.

Through the PhD program, you not only earn a valuable qualification but also gain opportunities to publish your work and present at conferences.

These activities can enhance your reputation, making you more desirable to potential employers. The salary of a PhD holder often surpasses that of someone with only an undergraduate degree, as their expertise is in high demand.

From my personal experience, obtaining a PhD can be challenging yet rewarding. It allowed me to explore my chosen field, chemistry, in depth and opened up new avenues for career growth.

However, it is crucial to consider the potential drawbacks before embarking on this journey.

Pursuing a PhD entails a significant time commitment, typically around 3-4 years, and can be quite expensive, as tuition fees for these programs can be steep.

Acquiring a PhD can provide numerous benefits, including expert knowledge, a higher salary, and opportunities for advancement in your field. However, carefully weighing the pros and cons is necessary to determine if it’s the right path for you.

Should you earn an MBA instead for the business world?

MBA vs PhD is a crucial decision that depends on your career goals and personal preferences. While both are advanced degrees, they offer significantly different paths.

I asked an MBA graduate and this is what they said:

“ Having experienced the MBA program myself, I can vouch for its practical benefits. An MBA focuses on business acumen and managerial skills, enabling you to climb the corporate ladder more quickly than a PhD. With a two-year duration, it’s a faster route to increasing your earning potential and offers a significant return on investment. Business schools emphasize teamwork, entrepreneurship, and ethics, providing graduates with a well-rounded skill set for the business world. “

On the other hand, a PhD, such as a PhD in economics or any other discipline, is ideal for those passionate about research and academia. It requires several years of dedicated study, with graduates becoming experts in their niche.

PhD holders often pursue careers as researchers, professors, or consultants.

When considering whether to pursue an MBA or a PhD, weigh the pros and cons of each degree and reflect on your long-term career aspirations.

Both options can be rewarding, but they cater to different ambitions and provide distinct opportunities in the professional world.

Is an MBA equal to a PhD and doctorate?

An MBA and a PhD are both advanced degrees, but they are not equal due to their differing purposes and career outcomes.

As someone who has interacted with both MBA and PhD graduates, I’ve seen firsthand the unique benefits of each degree.

An MBA is a professional degree, taking one to two years to complete, and equips students with practical business skills.

This degree is popular among those aiming to climb the corporate ladder in industries like finance, marketing, or consulting.

On the other hand, a PhD is a research-focused degree, requiring several years of dedication and original research contributions.

A PhD in economics or other fields often leads to careers in academia or research. PhD programs are highly competitive and demand an intense commitment to writing a dissertation and advancing knowledge in the discipline.

The debate between MBA vs. PhD highlights the significant differences in their focus and career paths.

While both degrees can be obtained at a business school, they cater to different ambitions and provide distinct opportunities. The choice between an MBA or a PhD depends on one’s end goal, work experience, and personal preferences.

So What’s Better, a PhD or MBA?

When considering MBA vs PhD, it’s essential to evaluate your:

• personal interests,
• career goals,
• financial commitment involved in each degree.

A PhD offers the opportunity to deeply explore a specific subject, contribute to the advancement of knowledge in that field, and establish yourself as an expert.

However, the process is often lengthy and demanding, taking up to five or six years of intense research and dedication.

The payoff might not always be immediate in terms of career prospects, as academia and research can be fiercely competitive arenas.

On the other hand, an MBA equips you with practical business skills and knowledge, often leading to a broader range of job opportunities and potentially higher salaries.

The program’s duration is considerably shorter, usually taking one to two years to complete, and offers a faster return on investment.

An MBA is particularly well-suited for those seeking to climb the corporate ladder, transition into a managerial role, or even launch their own startups.

It’s important to note that some individuals choose to pursue both degrees, combining their research expertise with practical business acumen to excel in various fields.

Does Anyone Earn Both A PhD And An MBA? Why?

MBA vs PhD too hard to decide? You can get both. Yes, there are indeed individuals who choose to earn both a PhD and an MBA, although this path is less common.

Combining the two degrees can create a unique skill set that is valuable in various fields.

For instance, a PhD holder in a specialized discipline may opt for an MBA to gain practical business skills and a broader understanding of the corporate world, which can be valuable in leadership roles or entrepreneurial endeavors.

Pursuing both degrees also allows for building diverse networks, connecting with professionals in academia and the business world.

Despite the significant time and effort required to obtain both degrees, those who undertake this ambitious path often find themselves well-equipped to navigate multiple career paths and excel in their chosen fields.

MBA vs PhD Career Options

Both advanced degrees can lead to successful careers, but they differ significantly in terms of their focus and job prospects.

An MBA degree, with its emphasis on business administration, prepares graduates for roles such as:

• management consultant,
• marketing manager, or
• finance director.

MBA holders are more likely to climb the corporate ladder quickly and enjoy higher salaries. The MBA program equips students with practical business skills, making them suitable for leadership positions in a wide range of industries.

MBA holders can also consider going for a DBA degree as well.

In contrast, PhDs are more likely to become professors or researchers, with a focus on deepening their expertise in their chosen field. In science that is a very common career goal. 

While the earning potential for PhD holders may not be as high as for those with an MBA, they often find fulfillment in their academic pursuits.

Getting an MBA might be the better option for those eager to advance quickly in the corporate world and who possess a strong passion for business. 

On the other hand, getting a PhD might be more suitable for those who wish to delve into research and contribute to academia.

Wrapping Up

The decision between MBA vs PhD is a highly personal one, hinging on individual career goals, personal interests, and the level of time and financial commitment one is willing to make.

Both advanced degrees offer unique benefits and opportunities, but they cater to different career paths and ambitions.

An MBA is an ideal choice for those seeking to climb the corporate ladder swiftly, transition into management roles, or launch their own businesses.

With a focus on practical business skills, MBA graduates find themselves well-prepared for leadership positions across various industries.

On the other hand, a PhD is geared towards those passionate about research and academia, providing an opportunity to become an expert in a specific field and contribute to the advancement of knowledge.

While the journey may be more demanding and time-consuming, the satisfaction of making an impact in one’s chosen discipline can be deeply rewarding.

The best choice depends on your long-term goals, professional aspirations, and personal preferences.

Reflecting on these factors, researching each degree thoroughly, and seeking advice from professionals and peers can help you make an informed decision that aligns with your ambitions and aspirations.

Whichever path you choose, MBA vs PhD can be instrumental in unlocking a world of possibilities and shaping your future career.

Dr Andrew Stapleton has a Masters and PhD in Chemistry from the UK and Australia. He has many years of research experience and has worked as a Postdoctoral Fellow and Associate at a number of Universities. Although having secured funding for his own research, he left academia to help others with his YouTube channel all about the inner workings of academia and how to make it work for you.

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Why a Doctorate in Business Administration Is Becoming More Valuable

Sponsor content from upGrad.

At the turn of the 20th century, the world was industrializing at a rapid pace. Businesses were growing larger and more complex, with more employees working in more diversified divisions spread across more geographical boundaries.

As a result, demand grew for people who had special training in managing the general operations of a business, which led to the creation and proliferation of the Master of Business Administration (MBA) degree.

More than 100 years later, MBAs have become a commodity that no longer serve organizations’ core needs.

In today’s age of data and information, knowledge has become the most valuable resource. Companies don’t necessarily need more general managers who can assess broad patterns across multiple industries—they need people with deep expertise in specific domains who can analyze data and generate unique insights that lead to better business decisions.

That’s why Doctorate in Business Administration (DBA) holders are becoming increasingly valuable in the modern workplace.

DBA is a professional degree representing the highest level of qualification in management. In contrast to an MBA, it takes students on a different path toward acquiring and using business knowledge.

For an MBA, students spend two years taking a broad range of practical courses to learn about several pillars of business—such as accounting, finance, marketing, leadership, operations, strategy, and ethics—to help them become effective leaders across many industries.

By contrast, DBAs spend up to two years studying academic literature across several domains and up to two additional years designing and executing an original research project: a dissertation focused on one domain. The primary goal of a DBA is to produce scholarly individuals who have deep expertise in a field of management.

When seeking executive-level positions, DBAs’ “Dr.” titles are likely to help them stand out from their peers. DBAs can also pursue high-level positions in areas such as consulting by becoming subject-matter experts—or maintain ties with academia as full-time or adjunct professors.

DBAs’ training gives them diverse career options. The academic literature they read gives them expertise in understanding management theories that can help them analyze real-world situations and differentiate the signal from the noise. A DBA specializing in innovation can assess whether newcomers to a market pose a credible threat as a disruptive innovation to an existing company.

Students then learn advanced scientific techniques in quantitative and/or qualitative methodologies, which trains them in analyzing data to generate valid inferences that their organizations can use for decision-making purposes. Rather than relying on gut feel and graphs, DBAs can use powerful techniques such as sampling data to reduce bias, using statistical regressions to identify the strongest factors that influence an outcome, or designing an experiment to gain 100% certainty over the causal relationship between variables.

Finally, DBAs combine their business knowledge with analytical skills to design and execute original research studies, making them the world’s leading experts in particular domains.

DBAs also stand out because they represent only 2% of all people who hold higher degrees in business. In 2021, more than 250,000 students graduated with MBAs or specialist degrees in business; only 5,000 graduated with doctorates.

While a DBA may represent an attractive option that can be highly valuable to organizations today, they are not necessarily recommended for everyone.

To help you determine whether a DBA is right for you, the most important question to ask yourself centers on whether you’re satisfied with the tools and frameworks you use to analyze data and information to make important business decisions. If you’ve ever found yourself wondering where these frameworks come from—or whether there might be a better way to make decisions—consider applying to a DBA program. These programs are designed to channel deep intellectual interests and passions toward producing business knowledge that’s both theoretically novel and practically relevant.

DBA training may help you develop deeper knowledge than an MBA program will while opening doors to more ambitious careers in industry or academia. While MBA degrees are designed to meet the needs of 20th-century businesses, DBAs can help meet the needs of organizations today—and well into the future.

Learn more about how earning a DBA can help you step up your career.

MBA vs PhD in Business

Key Takeaways

• An MBA is well-suited for students who are interested in practical work experience, while PhD candidates focus on those interested in research primarily.
• If you thrive in practical business settings, seek rapid career advancement, and value hands-on experience, pursuing an MBA degree may be a good choice.
• iI you’re passionate about research, academic pursuits, specialized expertise, and making scholarly contributions, pursuing a PhD in business may align better with your goals.

Students often face the dilemma of whether to pursue a PhD or an MBA. Each program offers unique benefits and challenges. In this article, we explore the similarities and differences between an MBA vs PhD in Business, and share a comprehensive overview to help you make your decision with ease.

Featured Programs

Mba vs. phd in business: a general overview, what is an mba.

Master of Business Administration (MBA) is an advanced degree in business administration available to students at the graduate level. Earning an MBA gives you a solid grounding in all things relevant to business.

Most people who pursue an MBA do so to prepare themselves for leadership roles. Individuals holding an MBA can have any of the following designations:

• Vice President of Finance
• Accounting Manager
• Product Manager
• Chief Financial Officer
• Human Resources Manager
• Financial Analyst
• Policy Analyst

What is A PhD?

PhD is the highest level of academic achievement recognized. It is a research degree at the doctorate level and can be earned in many fields, including business. The Doctor of Business Administration ( DBA )  is one of the most popular options among those seeking the highest degree in business.

Most people who get a doctorate in business do it because they are really interested in teaching at a university or because they want to study a particular subject in depth. Designations held by individuals holding a doctorate in business include:

• Financial manager
• Management analyst
• Chief executive officer
• Sales manager
• Market research analyst

Comparing MBA and PhD in Business

Many students face the challenge of choosing between an MBA or a PhD in business. Wondering which of these programs would be the right fit for you? Comparing these programs can help you get the answer you’re looking for.

Similarities

Competitive admissions.

Admission to MBA  and PhD programs can be highly competitive due to factors like limited funding, a high number of applicants, and limited available slots. This competitiveness underscores the importance of presenting a strong application that highlights academic achievements, relevant experience, and MBA career aspirations .

Enrollment Requirements

Candidates typically need a bachelor’s degree to apply for MBA programs, although a background in business can bolster their application. PhD programs also typically require a bachelor’s or master’s degree in the relevant field.

This prerequisite makes sure that applicants have a foundational understanding of academic principles and are prepared for graduate-level coursework.

Standardized Tests

Prerequisites for MBA programs often include standardized tests such as the Graduate Management Admission Test (GMAT)  or the Graduate Record Examinations (GRE). Similarly, some PhD programs may require candidates to  take the GRE  too.

These tests assess skills in areas like analytical writing, quantitative reasoning, and verbal reasoning, helping admissions committees evaluate applicants’ readiness for advanced academic studies.

Differences

Work experience.

MBA programs often value applicants with relevant work experience, especially for executive or part-time MBA programs. Professional experience can enhance classroom discussions, bring real-world perspectives to coursework, and contribute to a diverse learning environment.

In contrast, while work experience can be beneficial for PhD applicants, it is generally not a mandatory requirement for admission.

Curriculum Focus

The subjects covered in an MBA program compared to a PhD program are what sets them apart. MBA programs typically provide a comprehensive understanding of business practices, including finance, marketing, operations, and strategy. The curriculum emphasizes practical skills, leadership development, and decision-making in business contexts.

In contrast, PhD programs prioritize research skills, critical thinking, and academic contributions to a specific field of study. Doctoral students dive deep into a chosen area of research, conducting original investigations and contributing new knowledge to their discipline.

For instance, one student might choose to learn about marketing and how it works for small businesses. Instead of trying to be an expert on a bunch of different things, you will focus on one specific area of business and learn about its ins and outs.

Degree Duration

The time commitment required to complete an MBA degree  can vary from one institution to another. While there are MBA programs that can be completed in 1-year , two years is the typical duration of a full-time MBA program . If students enroll full-time in an accelerated MBA program , they can finish the degree in eleven to sixteen months.

It could take three to six years to finish a part-time MBA degree. Part-time executive MBA programs typically have a duration of eighteen and twenty-four months.

Generally, it takes students four to six years to finish a PhD program. However, for some, it can take as long as eight years. The duration of the program might differ greatly from one student to another and from one curriculum design to another.

Distinguishing Factors

Besides the differences mentioned above, there are some major distinguishing factors between an MBA and a PhD in business. Going through them will further help you evaluate the right choice for yourself.

Networking Opportunities

MBA programs offer a diverse and dynamic networking environment, bringing together professionals from various industries and backgrounds. Students in MBA programs can leverage these networking opportunities to build professional connections, exchange ideas, and access career development resources.

On the other hand, a doctorate in business offers very few opportunities for peer coordination, as the focus is primarily on individual research and scholarly pursuits.

Research vs. Practical Experience

A fundamental distinction between MBA and PhD programs is their emphasis on research versus practical experience. Completing a thesis is a necessary requirement for graduation for most master’s degree programs. While some MBA programs emphasize theoretical understanding and research, others prioritize practical experience.

In contrast, doctoral students undergo rigorous testing to demonstrate their expertise. These tests include candidacy and comprehensive exams. Additionally, a dissertation, a detailed exploration and analysis of a specific subject or research area, is mandatory for earning a PhD.

Doctoral candidates carefully select a thesis topic, conduct extensive research, and present their findings. The culmination of their doctoral journey involves defending their dissertation before an advisory committee, showcasing their mastery of the subject and research skills.

Learning Styles

Choosing between an MBA and a PhD in business involves understanding their distinct structures and learning styles. MBA programs follow a structured path with core courses and specialized tracks, emphasizing practical projects and teamwork in business.

On the other hand, PhD programs offer a more individualistic journey, focusing on research and personal exploration within the field.

Both attract students from diverse backgrounds, with MBA programs often catering to working professionals through flexible schedules.

When can an MBA in business be useful?

So far you’ve learned that even though they serve similar objectives, MBA and PhD are different. Below is a list of plausible ways an MBA can be useful:

• Career Advancement: An MBA benefits professionals seeking rapid career progression within corporate environments. It equips them with a comprehensive understanding of various business domains, leadership skills, and strategic decision-making capabilities.
• Leadership Roles:  An MBA can benefit individuals aiming for leadership positions such as Vice President of Finance, Chief Financial Officer, or Human Resources Manager. The program hones their managerial and organizational skills, preparing them to lead teams and drive business growth.
• Industry Transition:  MBA programs often attract professionals looking to transition into new industries or roles. The diverse curriculum and networking opportunities MBA programs offer facilitate this transition by providing insights into different sectors and fostering connections with industry experts.
• Entrepreneurship:  Many MBA graduates venture into entrepreneurship , leveraging their business acumen and acquired skills to start and manage their own businesses. The program provides valuable knowledge in areas like marketing, finance, and operations, which are important for entrepreneurial success.
• Global Opportunities:  With globalization shaping modern business landscapes, an MBA focusing on international business can be particularly useful for professionals seeking global career opportunities. It equips them with cross-cultural management skills and an understanding of international trade dynamics.

When can a PhD in business be useful?

A Ph.D. in business is a prestigious and advanced degree that opens doors to a wide range of impactful career paths. Beyond its academic significance, this degree equips individuals with many other skills, making them invaluable assets in various professional domains.

Let’s see where a PhD in Business can be particularly useful.

• Academic Careers:  One of the primary paths for PhD graduates in business is academia. They can pursue careers as professors or researchers in universities, contributing to developing knowledge in their field and mentoring future business leaders.
• Research Excellence: PhD programs emphasize rigorous research methodologies and critical thinking. Individuals interested in conducting in-depth research on specific business topics, publishing scholarly articles, and advancing the theoretical foundations of business disciplines find PhD programs highly rewarding.
• Specialized Roles:  Some specialized business roles, such as Chief Economist, require a deep understanding of economic theories and their practical applications. A PhD in business focusing on economics or related fields can be instrumental in securing such positions.
• Consulting and Advisory Roles:  PhD holders in business often excel in consulting and advisory roles, offering strategic insights, data-driven recommendations, and innovative solutions to businesses and organizations.
• Leadership in Research Institutions:  PhD graduates can lead research institutions , think tanks, or policy development organizations. Their expertise and research acumen contribute to evidence-based decision-making and the advancement of industry practices.

Which is better — An MBA or a PhD in business?

The decision between an MBA and a PhD in business ultimately depends on your career aspirations, interests, and desired impact. If you thrive in practical business settings, seek rapid career advancement, and value hands-on experience, an MBA may be better suited.

On the other hand, if you’re passionate about research, academic pursuits, specialized expertise, and making scholarly contributions, a PhD in business may align better with your goals. It’s important to evaluate your priorities, long-term objectives, and preferred learning and work environments when making this decision.

3 Tips for Choosing Between an MBA and a PhD

Making the choice between the two programs is going to be a tough decision and you’ll need to get all the help you can. So, we’re sharing some tips that can help you assess your priorities, interests, and career trajectory.

Consider these tips when you’re trying to figure out if earning a doctorate will benefit you more or an MBA.

Consult a Professional Guidance Counselor

Consult a career advisor  if you are confused about which degree will serve your goals best. They are a great resource for learning about the typical qualifications for your dream job.

You can learn about the requirements of different MBA and PhD programs and assess whether they are a good fit for you.

You can find independent career counselors or take advantage of the free services offered by career guidance counselors at educational institutions.

Find out Each Program’s Commitments

Consider the time and money needed for each program to make sure the one you choose is a beneficial investment for you in the long run. One way to do this is by weighing the time and money spent on the program against the potential gain in income.

Consider Your Preferred Learning Style

Consider your learning style before committing to a degree program since some may place a greater emphasis on certain approaches than others.

Courses that primarily include group work are common in graduate degree programs. In a PhD program, you can be expected to devote the majority of your time to extensive solo research.

Related Questions

Is acquiring a phd beneficial.

A doctorate in business shows that you are very knowledgeable and skilled in your field. It opens doors to rewarding professions in the public and private sectors, such as consulting, investment banking, and others.

Which MBA is most difficult?

One of the most challenging MBA specializations is operations management.

Is earning a PhD stressful?

Managing a personal life and academics and developing new research can be challenging. Generally, PhD students are known to experience stress and mental health problems along the way.

A study on PhD failure rate concludes that 19.5% of PhD candidates do not pass their final exam, and 16.2% drop out of the program before completion. However, overall 85% of PhD applicants are able to finish the program and earn their degree.

If you thrive on competition and practical challenges, an MBA might be the right choice for you. Alternatively, if you enjoy exploring theoretical frameworks, intellectual growth, and mentorship, a PhD could be ideal. If you’re someone who enjoys both aspects, you could consider going for a dual PhD.

Should You Get An MBA In Finance? Here’s What To Know Before You Enroll

Updated: Dec 14, 2023, 12:20pm

A master of business administration (MBA) in finance combines general business management classes and specialized finance-specific courses. Earning an MBA in finance can lead to diverse career opportunities and professional advancement in the financial sector. Read on to learn about what to expect when enrolling in an MBA finance program.

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Admission Requirements for an MBA in Finance

Admission requirements for an MBA degree in finance vary among programs. To qualify for enrollment, students generally need a bachelor’s degree in economics , business, statistics or a related field. Each applicant must also meet a minimum GPA and submit sufficient GMAT scores, letters of recommendation or references and an admissions essay or personal statement.

Part-Time vs. Full-Time MBA Options

Many MBA programs offer part-time and full-time options. Part-time enrollment provides more flexibility regarding school-life balance, suiting students who work full time, have established careers or are seeking a career change. Some part-time programs allow students to take classes in the evenings or on weekends to work around their schedules.

Full-time enrollment is ideal for students with less professional experience. This option may qualify students for more scholarships and graduate assistantships than part-time enrollment. Most students can enroll in master’s programs full time immediately after earning their bachelor’s. Full-time students tend to have a more demanding workload than part-time learners, as full-time enrollment typically involves a busier class schedule.

MBA in Finance Courses

Corporate finance.

Corporate finance courses examine key concepts and principles of financial theory, providing students with the framework and tools they need to analyze corporate financial decisions. Course topics include business valuation methods, mergers and acquisitions, equity capital and debt capital raising. Additionally, learners study corporate financial policy and capital structure. Students develop skills for analyzing financial risk and making corporate investment decisions.

Global Economy

Courses on the global economy offer insight into how economic environments vary for businesses worldwide. These classes analyze the interactions between economic systems, institutions and social dimensions in the global economy. Students survey the key components and stages of international economic development. They also examine economic theory to understand the impact of government policies and how financial markets operate.

Course topics include economic forecasting, economic growth, inflation and deflation, capital flows, international trade and foreign exchange rates . Students may also explore national income determinants and the development of stabilization policies.

Macroeconomics

Macroeconomics courses examine economic theories, principles and concepts regarding the global economy’s performance. Students gain an understanding of how to measure national economic variables through aggregate supply-and-demand analysis. Key topics often include monetary and fiscal policy, trade and production, income distributions, employment, gross domestic product and business cycles.

Investment Management

Investment management courses examine the theories, concepts and strategies underlying firm investment decisions and the management of investment portfolios. Topics include portfolio optimization, asset allocation, diversification, mutual funds and performance evaluation. Students develop an understanding of global financial markets and what affects financial behaviors at the micro and macro levels.

Career Options for an MBA in Finance Graduate

We sourced salary data for this section from the U.S. Bureau of Labor Statistics in December 2023.

Financial Manager

Median Annual Salary: $139,790 Job Growth (2022-2032): +16% Job Description: Financial managers help private and public organizations implement and manage financial goals, distribute financial resources and oversee budgets. These professionals evaluate financial information, reduce financial risk, prepare financial reports and advise businesses on financial decisions.

Financial Analyst

Median Annual Salary: $96,220 Job Growth (2022-2032): +8% Job Description: Financial analysts analyze organizations’ past and current financial data and approximate future revenues and expenditures. They use data-driven insights to forecast the return on investment for business ventures and various stocks, write financial reports and gather data to inform their clients on their investment decisions.

Personal Finance Advisor

Median Annual Salary: $95,390 Job Growth (2022-2032): +13% Job Description: Personal finance advisors assess individuals’ financial needs and guide their decisions on various financial matters, including investments, insurance and tax laws. These professionals help their clients determine short- and long-term goals.

Budget Analyst

Median Annual Salary: $82,260 Job Growth (2022-2032): +3% Job Description: Budget analysts assess budget proposals, request funding, evaluate spending needs and conduct cost-benefit analyses to maximize companies’ profits. They help determine the most efficient way to allocate funding and resources across an organization’s various departments and programs. They oversee budget reports, manage the status and availability of funds and forecast future financial needs.

Frequently Asked Questions About an MBA in Finance

Is an mba useful for finance.

Yes—business and finance often go hand in hand, making an MBA an ideal master’s program for current and prospective finance professionals.

What is the highest-paying job for graduates with an MBA in finance?

The highest-paying job for graduates with an MBA in finance is investment banker. However, several factors can affect salary potential, including professional experience and location.

What can you do with an MBA in finance?

An MBA in finance can lead to various career pathways. Students acquire knowledge and skills transferable to many fields and industries. Potential positions include chief financial officer, director of finance, certified public accountant, investment banker, corporate strategist and financial controller.

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The MBA vs PhD Debate

• By Grace M.
• August 14, 2020

If there’s one question that seems to get business university professors flinching at, it’s the all-to-often “ what’s better – an MBA or a PhD? ”

The reason for this is clear – asking such a question seems to suggest that the result of obtaining an MBA or PhD is the same. This couldn’t be any further from the truth.

Let us first quickly break down what an MBA and a PhD is.

MBA is short for  Master of Business Administration , while PhD is short for  Doctor of Philosophy . Just from the first word of both types of degrees, we can already see that there’s an obvious difference between the two, but let’s proceed.

In terms of the required time commitment, an MBA will usually take two years to complete full time. On the other hand, getting a PhD can take four years (unless you decide to undertake it part time or enrol into an accelerated online PhD degree programme). So if time is your primary concern, then an MBA would be the obvious path for you.

As an MBA student, you’ll find that much of the learning curriculum is closely related to a professional environment. In fact, this is why some universities mandate at least one year of actual work experience as an entry requirement. As a result of the masters degree being so closely related to business in practice, an MBA student will usually research a broad range of subjects. Each of these subjects would focus on a unique business aspect such as accounting, consulting, economics, marketing, finance, leadership, management, ethics and trading.

On the other hand, a Business PhD student will only focus on one subject and do so in much greater detail. On top of this, the PhD student will usually also be expected to support lecturers with teaching classes and leading tutorial sessions.

The reason for this difference is because a doctorate is an advanced degree which aims to make you an expert in a specialised field. Because of this, a PhD is regarded as the higher professional qualification of the two.

MBA vs PhD Entrance Requirements

Due to the amount of funding available, a high number of applicants and a few available positions, the competition for entry into MBA and PhD programmes can be very high.

The specific requirements depend on the country you intend to study in; however, most MBA programmes require you to sit Graduate Management Test ( GMAT ) or Graduate Record Examinations ( GRE ). Regardless of whether you need to undertake a pre-qualification exam or not, most universities prioritise applicants who already have a level of professional experience.

The reverse is true for PhD programmes. For PhDs, you will require a relevant undergraduate or postgraduate degree (usually with a 2:1 or 1st), but you will not be expected to sit any pre-entrance exams nor will you be expected to have working experience. As a result, most students who do a business PhD are younger than those who do an MBA.

Earning your MBA or Doctorate Online

As if the MBA or PhD debate wasn’t enough, the online versions of these degrees are starting to get thrown into the comparisons. With the fast-developing rate of the internet and a general trend towards online global connectivity, higher education is experiencing a significant transformation.

Not only is it possible to get a doctorate online , MBA programmes and Masters in Project Management are also much more widely available online from top-ranking universities compared to several years ago.

While online learning may not be for everyone, many adult students, including myself, favour online degrees due to the flexibility they provide to on-campus or distant learning programmes. As someone who used to dedicate several hours a night on a university campus in a neighbouring area, take it from me, being able to study from your home office isn’t only easier, it’s much less stressful.

MBA vs PhD Career Options

So what gives a better return on investment in terms of career options, an MBA or a PhD?

The MBA is a specialised business degree, and as such, anyone who holds it is a valuable asset for any business. Industries are all about using employee abilities to the organisation’s benefit, and an MBA isn’t something an organisation should or will ignore.

Having a Masters in Business Administration is usually associated with greater career prospects. This is reflected in the speed that an MBA degree holder can climb the corporate ranks compared to an individual who doesn’t hold the specialised degree. Not only can they progress faster, but MBA holders typically also achieve higher positions during their career. This can include highly sought after positions such as associate directors and senior executives (assuming the student is ambitious and dedicated enough). Another benefit of getting an MBA is surrounding earning potential. It’s not unusual for those with an MBA from the London Business School, Oxford University or Imperial College London to receive starting salaries in excess of £50,000 a year .

In comparison, most business PhD holders won’t follow the same path as their MBA colleagues. Instead, most PhD graduates will enter into either a research or academic career. Because of this significant difference in the typical career path, which of the two types of degrees is better suited for you will depend on exactly what it is you want to do after completing your studies.

Finding a PhD has never been this easy – search for a PhD by keyword, location or academic area of interest.

PhD after MBA

Hopefully, it should be clear by now that an MBA and a PhD are two very different degrees, and because of that, it should also start to become clearer regarding which degree is for you.

If this isn’t the case, it may be useful to know that some business students, after completing their undergraduate degree, obtain an MBA and then move onto a PhD. This actually makes a lot of sense since the two forms of professional qualifications cover different stages of a student’s learning, and on that basis, there’s no reason why you couldn’t do both.

In fact, a few universities offer programmes that combine both degrees as a PhD-MBA dual degree. They are better known as PhD-MBA Integrated Degrees (or PhD-MBA Joint Degrees in US Graduate Schools) and can be the perfect option for anyone who wants to get the best of both qualifications. You don’t necessarily need an MBA for PhD eligibility, but they can prove beneficial as the transition from MBA to PhD will usually be less arduous than from Bachelors to PhD.

So what’s Better, a PhD or MBA?

The final answer depends on you. If you’re an individual who enjoys going up against others or the market, then an MBA will probably be the right option for you. On the other hand, if you prefer the realms of researching business theories, challenging yourself mentally and being able to pass on knowledge to others, then a PhD could be the better option. If both options sound interesting to you, then you may find a PhD-MBA dual degree of interest.

In the end, then, the question isn’t about whether an MBA is better than a PhD, but which one is personally better for you.

Learn 10 ways to impress a PhD supervisor for increasing your chances of securing a project, developing a great working relationship and more.

There are various types of research that are classified by objective, depth of study, analysed data and the time required to study the phenomenon etc.

The purpose of research is to enhance society by advancing knowledge through developing scientific theories, concepts and ideas – find out more on what this involves.

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Calvin is coming to the end of the second year of his PhD at Trinity College Dublin, Ireland. His research is focussed on how recovery as a concept is socially constructed in mental health services.

Sara is currently in the 4th year of the Physics Doctoral Program at The Graduate Center of the City University of New York. Her research investigates quantum transport properties of 2D electron systems.

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Mba vs. phd: choose your advanced degree path.

In 2021, it is practically conventional wisdom that an advanced degree like a master’s degree, an MBA, a PhD, a JD or an MD is a necessity if you want to give yourself the best chance of a successful, meaningful career. While professional doctoral degrees like JDs and MDs will lead you down very specific career paths, it can be harder to envision the career outcomes associated with more versatile degrees like the MBA or the PhD.

People pursue these two advanced degrees for a variety of reasons, and no two journeys through higher education and into professional excellence are quite the same. If you are internally debating the merits of earning an MBA vs. earning a PhD, read some of the career pathways you might take with either degree—or with both of them.

Who earns a PhD? And what do they do with it?

People who pursue a doctoral degree typically do so out of a commitment to producing new knowledge at the leading edge of a subject or field that holds deep meaning for them. This can describe an incredibly diverse array of pursuits, from developing innovative new materials for medical devices and developing novel modeling techniques for research applications to examining archival records of media production and scrutinizing the linguistic elements of ancient texts.

People often earn PhDs with the goal of an academic career in mind. This is not necessarily the case in all scholarly disciplines, however, and even in those that tend to be more academic focused, recent trends may be demonstrating a shift. Those who earn PhDs in STEM fields or in the data-driven social sciences may do so with the end goal of a professional career in mind, specifically one where their skills at designing and conducting research will be rewarded with heightened responsibility and increased pay. And even in humanities disciplines with seemingly few analogues in the professional world, graduate students are increasingly envisioning their futures outside of the classroom as tenure-track and full-time professorships grow scarcer by the year.

How can a PhD help you in the business world?

The skills and mindset you develop in a PhD program are certainly applicable in the “real” world, regardless of whether your subject of choice has a direct pathway to a professional job. If you have earned a PhD in a STEM field, you will likely enter the professional workforce at a higher pay grade than you would without your degree. You may find yourself fast-tracked toward a management role as well, as your experience designing and overseeing research projects can position you well to lead a team of employees, manage workloads, and successfully meet deadlines.

PhD holders in the social sciences and humanities may also find their skills in high demand in the business world, even if they might need to spend a bit of time learning how to convey their value on a resume and in a job interview. Research in social sciences fields like sociology and political science often requires analysis of large and complex data sets; the skill set they develop in completing this work can translate easily into a business analytics role. And the persuasive writing, editing and organization skills humanities graduate students develop are well-suited to roles in strategic communication or marketing.

Should you earn an MBA instead?

If you are considering whether to earn an MBA or a PhD and you know your eventual goal is to obtain a leadership role in a business organization, the MBA is likely the right path for you. An MBA can make an immediate impact on your earnings and on the career opportunities available to you. It is also an extremely versatile degree, and can lead to advancement whether your career already seems to be heading down a relatively narrow path in a specific field or whether you intend to keep your options open for a potential pivot.

Additionally, an MBA might also be your best bet if the kind of fulfillment you get from your work comes less from successfully completing your assigned task or from navigating the day-to-day challenges of your particular area of technical expertise and more from positioning your organization for success. If you would rather dedicate your time and energy toward strategizing your company’s business goals and the best ways to achieve them, and to truly leading rather than simply managing , you should strongly consider enrolling in business school.

The most significant difference your choice to earn an MBA instead of a PhD will have on your life is on the amount of time and energy you have to dedicate to it. A PhD is a full-time commitment in which work typically balloons well past 40 hours per week, with little respect for evenings or weekends. It will take an absolute minimum of four years to complete, and more likely five to seven. An MBA, conversely, will typically be attainable in just two to 2.5 years and can be completed while you keep your full-time job—and your full salary. Seek out a top-tier online program if you would like your MBA studies to fit most conveniently around your existing schedule and responsibilities.

Does anyone earn both a PhD and an MBA? Why?

It is not unheard of for a single person to earn both a PhD and an MBA, but the order in which one does so is often determined by their eventual career goals, including by the way these goals might evolve over the course of their career. PhD holders who are working in fields that are directly related to their research may, after some years, opt to return to school for an MBA to help them prepare to climb the corporate ladder at large technical organizations. In smaller companies, such as engineering or biotechnology startups, the org chart may tilt heavily toward people with technical backgrounds rather than business ones; adding an MBA and the skills that come with it to your resume in an environment like this can benefit the entire organization.

Or, if you earn your MBA and spend time working and advancing in a professional field only to eventually realize your true calling is to teach others, you may choose to earn a PhD in economics or a business discipline to help you transition into a professorship in a business school. Preparing the next generation of business leaders can be extremely meaningful work, and many successful professionals decide the most positive impact they can make on the business world is by taking this route.

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MBA versus master’s in finance: What’s the difference?

Preston Fore is a staff writer at Fortune Recommends, covering education and its intersection with business, technology, and beyond. Preston graduated from the University of North Carolina at Chapel Hill, where he studied journalism and global studies. His previous work can be found in The Daily Tar Heel and CNN. 

Jasmine Suarez is a senior editor at Fortune Recommends, where she was hired to build and launch the department in 2022. Before joining Fortune, she was a senior editor at Business Insider , where she led various verticals on the personal finance team .   In the past, she’s worked for Red Ventures, Adweek, McGraw-Hill, Pearson, and more. 

There is no one size fits all education for those seeking a career in finance, in part because the industry itself is so diverse in terms of careers. A job in finance can be approached from a slew of different angles, from the world’s largest companies to startups, and from financial planning to corporate finance. 

For those people seeking to further their career in finance through graduate school , there are plenty of options. Prospective students who’ve narrowed their choice to an MBA or a master’s in finance (sometimes referred to as MFin) might wonder: “Which is better?” 

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“In short, one is a Swiss knife while the other is a highly sharpened ax. Both have their utility, so one isn’t necessarily better than the other,” says Sameer Kamat, founder of MBA Crystal Ball, an MBA admissions consulting firm.

‘How do you want to approach finance?’

For those interested in finance, it is first important to consider what you are seeking in your graduate-level education. To answer, the real question, admissions and business school experts say, should be: “How do you want to approach finance?” 

That’s the way Rebecca Mallen-Churchill, senior director of recruitment, admission, and financial services at Arizona State’s W.P. Carey School of Business, sums up the choice of an MBA versus a master’s in finance. When weighing that decision, she says, it’s important to ask yourself: “From what context are you approaching it?” In both the MBA and the master’s in finance, “the content of the actual curriculum is going to be a little overlapping in the finance classes. It’s just a matter of how you put it into play.”

MBA candidates will approach their finance coursework from a managerial perspective, which usually aligns with their goals to land a management or leadership position after graduation. That’s different from a typical master’s in finance student, Mallen-Churchill says. 

“You are probably training—at an initial stage, directly after graduation—to be an individual contributor. So you might be working as an analyst, or something of that sort.”

The master’s in finance can be seen as taking a targeted slice out of the MBA playbook, says Cherrie Wilkerson, associate dean for young professional programs at Vanderbilt University’s Owen Graduate School of Management . That can be especially appealing for young students who know they’re interested in finance and want to accelerate their careers in the field.

“The courses they take are a sliver of the MBA class. So they’ll take MBA-level finance classes,” and often with MBA students as their classmates, Wilkerson says. “They just don’t take the whole gamut of the MBA experience.”

MBA versus master’s in finance: the main differences

One of the main differences between an MBA and master’s in finance can be analyzed through looking at breadth versus depth. MBAs tend to be more general and touch on everything from supply chains and entrepreneurship to marketing and networking while the master’s in finance can be considered highly specialized.

“The MBA goes a mile wide and an inch deep for students who are hoping to get into management roles. In contrast, the MFin goes an inch wide and a mile deep,” Kamat adds. “It’s an excellent option for professionals who view finance as a long-term career option.”

The master’s in finance does not focus on managerial concepts or expose students to other areas of business such as marketing or strategy, explains Clemens Kownatzki, associate dean and assistant professor of finance at Pepperdine University’s Graziadio Business School . Whereas the degree does touch on in-demand skills like data analysis. 

“Increasingly though, finance programs include courses in economics, econometrics, statistics and data science as well as exposure to programming in Python ,” he adds.

For those who are conflicted by these distinctions, an MBA with a finance concentration could provide a way to get the best of both worlds.

The narrow, more focused approach of a master’s in finance comes with certain advantages—and drawbacks. For example, the master’s in finance at W.P. Carey can be completed in nine months; that’s much shorter than a full-time MBA, which comes in at 21 months. On the other hand, the master’s in finance is offered only as a full-time, in-person program, whereas W.P. Carey offers more flexible arrangements with its online MBA for working professionals.

However, there certainly are ways to obtain a master’s in finance online and even part-time, though your options may be more limited than say, doing an online MBA or part-time MBA with a finance specialization. 

Cost and outcomes

When it comes to cost , that time on campus is also a factor; like traditional, full-time MBA students, master’s in finance students will have to forgo a salary when they’re in school. But many master’s in finance students at both Owen and W.P. Carey are coming fresh out of their undergraduate degrees, or with just a few years of work experience, Wilkerson and Mallen-Churchill say, so that opportunity cost might not factor in so much for them. 

As far as actual tuition, a 2023–24 master’s in finance student at Owen would be looking at $68,500 in tuition for the 10-month program. A traditional, in-person MBA student would pay the same tuition—but for two years.

The degree outcomes are also an important factor for prospective students to consider. In 2019, Owen calculated its MBA graduates as coming out with an average salary of about $154,000, whereas its master’s in finance candidates had an average starting salary of about $86,000. Part of that difference can be explained by MBA graduates typically having more work experience, along with graduates in these programs pursuing different kinds of roles, even if they’re both in the realm of finance, according to information from the school.

The pros and cons of an MBA

• Networking : The MBA experience is centered around meeting fellow aspiring business leaders
• Curriculum : Students gain a comprehensive view of the entire world of business
• Post-grad opportunities : MBA programs have internship fairs and on-site job recruitment which can help students land their dream career
• Cost : Some traditional MBA programs can cost close to 250k, leavings students with a mound of debt
• Length : Because of a typical 2-year commitment, students have to forego working during the program
• Competition : Getting into an MBA program is not easy, with required testing, essays , and interviews

The pros and cons of an master’s in finance

• Time : Master’s in finance can largely be completely in closer to one year
• Affordability : Because of the shorter length, programs may be half the cost of an MBA
• Curriculum : Students may come away with in-demand skills like knowing how to use Python
• Networking : Students may have less work experience
• Flexibility : There are less programs with part-time or online options
• Curriculum : Students will not have as much training in leadership principles or other business areas like marketing or strategy

Should you get a master’s of finance or a master’s of business administration?

Even though MBA and master’s in finance programs might overlap with courses and professors, they differ in how they treat the subject matter itself. 

“Those specialized masters are built to give you the depth of knowledge, where an MBA is really meant to give you that breadth of knowledge,” says Mallen-Churchill.

The good news is that when it comes to admissions, the two types of programs generally require the same types of materials from applicants, including:

• Transcripts
• Standardized testing ( GMAT and/or GRE)
• Essay responses (written or video)
• Letters of recommendations 
• Application fee (waivers sometimes available)

For prospective students who are struggling to figure out which program to pursue, Wilkerson recommends taking a step back and looking at the sorts of career outcomes you want in the long term.

“If you’re really clear about your career goals, the choice kind of becomes obvious,” she says. “For prospective students who are having trouble deciding, they should go back to square one: What do you hope to gain from this? What is the desired outcome?”

Frequently asked questions

Which is better: mba or masters in finance.

It depends on your career goals. For those very interested in finance, then the master’s degree can be a great path, especially if you are young and may not have studied a related field in undergrad. An MBA in particular can help propel you to a leadership role in finance or other business areas.

Is an MBA worth it for finance?

Yes, if you want to pursue a career in finance then an MBA can help you get there since you will learn the necessary skills in finance as well as in other areas like management and marketing. An MBA with a finance concentration could also be a great idea to become an expert in the field.

Who earns more MBA or masters in finance?

MBA graduates earn more money than master’s in finance graduates, but this can be due to a variety of factors, including that MBA students are typically older and pursue a wider breadth of roles in business. MBA graduates of Indiana University (Kelley) , for example, earn mean base salaries of $140,000 whereas master’s in finance earn mean base salaries, plus signing bonus, of $85,000.

Check out all of  Fortune’ s  rankings of degree programs , and learn more about specific  career paths .

• Choose from our rankings of the best MBA programs to find the next phase of your educational journey.
• This list helps those looking for MBA program options that do not require submission of test scores to apply.
• Our directory of the most affordable online MBA programs can help you find the school that best fits your budget.
• You can work towards your career goals on your own time by selecting from our list of the best part time MBA programs .
• To help you pick the program that’s the best fit for you, we made this list of the best executive MBA programs .
• Interested in earning your MBA online? Here’s our ranking of the best online MBA programs .

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No matter which degree path you take, continuing your education at a higher institution is always an honorable goal. For most people, it’s easy to decide to move ahead to the level of a bachelor’s degree, and then from there, it’s a simple stretch to a master’s. But once you have your MBA, should you stop or continue on to your doctoral degree? There’s where most of us have our debate.

Obtaining your MBA is hard enough, but a PhD requires intensive concentration on a focus area that, for at least two years and sometimes longer, encompasses your entire life. PhD graduates receive an education in which the knowledge they gain is used to make an impact in innovative ways on the world. There are some advantages to both the MBA and the PhD that make them both good choices, depending on what you want in your career.

What Does an MBA Do

The MBA is one of the most popular graduate program degrees. Each program offers a different skill set, but all of them are business-related. There are educational paths offered in areas like statistics, finance, accounting, economics, leadership, ethics, management, and entrepreneurship, among many others.

By obtaining your MBA, you’ll be valuable to industries around the world because you’ll learn your hard skills, but you’ll also have experience with soft skills to make you a better “people person.” Through courses designed to develop leadership, analytics, and critical thinking, you’ll be able to handle teamwork, individual work, and communication in your field of study.

What Does a PhD Get You?

The concept of a Doctor of Philosophy might not sound like what you want to do with a field completely unrelated to that, but it’s actually a professional degree that designates you as a specialist in the field of your choice. Moving away from today’s idea of philosophy, the word originated from the Greek word philosophia , which means “a love of wisdom.” When you are passionate about a chosen subject and love to find the wisdom in it, you can aim for a PhD.

With a PhD, you can teach at any level or obtain work in a specialized position.

The PhD is a postgraduate academic degree that you obtain when you take the required courses and submit a thesis or dissertation on an original topic that shows you’re qualified to be considered an expert on the field. It’s the highest degree you can achieve, in general.

Debating the Pros and Cons of Each

A PhD isn’t for everyone, but if you decide it’s what you want to do, it’s a very impressive goal! Many older learners are returning to school for their PhD today because it’s now the sought-after degree in businesses around the world. They want to advance their career paths, and an MBA isn’t cutting it.

With so many online courses available now, it’s easier than ever to return to school for your PhD. But why would you want to? There are advantages and disadvantage to both, such as:

●      You can obtain many jobs in your chosen career field with an MBA, so it allows you to get started earlier and begin making money sooner, with less student debt.

●      An MBA makes you more valuable in industries because it’s a specialized business degree.

●      An MBA gives you more opportunities to progress further in your field of choice and increases your earning potential.

●      A PhD, however, gives you access to jobs in the research or academic world.

●      The average PhD holder makes significantly more annually than an MBA holder.

●      Obtaining a PhD young gives you an increased return on your investment.

●      MBAs are becoming commonplace, while PhDs are in demand in every industry around the world.

If you want to ensure that you’re held as valuable in your career and have as many doors open as possible, the PhD is the way to go. However, if you are solely interested in business and want to live comfortably without the excess stress of continuing education, the MBA serves your purpose.

Impactio Makes Publishing Easier

Every higher institution program requires extensive written work, and once you graduate and enter the academic field as a career, you’ll be expected to publish your findings frequently. The work you write is predominantly knowledge-based from your expertise, but when you have a program like Impactio that makes it easier to format and design your article, the stress load is reduced.

Impactio is an all-in-one software solution designed for and used by expert scholars everywhere. The tools you need to create professional PDF documents and web-based publications are at your fingertips, so you can further your education or continue exploring your research!

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• Master’s in Finance vs. M.B.A.: Understanding the Differences

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A Master of Science (M.S.) in Finance and a Master of Business Administration (M.B.A.) are two advanced degrees with career-shaping potential. Future business leaders deciding between the two need to understand the benefits and drawbacks of each program. In this article, we discuss the curricula, career outcomes, admissions requirements, and other features of an M.S. in Finance compared to an M.B.A.

Curriculum: What You’ll Learn

M.s. in finance: for the analytical mind.

M.S. in Finance programs place a heavy emphasis on financial analysis education rather than general business topics like marketing and organizational management. This specialized focus gives students a deeper understanding of finance and helps them develop the skills to reach the highest levels of this field.

An M.S. in Finance’s curriculum teaches students financial modeling, quantitative analysis, and how to use financial tools and software. Students may also be able to take elective courses to specialize in areas such as asset management, financial engineering, or international finance.

Alongside technical financial skills, M.S. in Finance courses teach critical thinking and problem-solving. At MTSU, the M.S. in Finance program ensures that students leave the program ready to make a difference in the financial performance of both small and large organizations.

Students leave this program having learned to effectively evaluate a company’s financial position or quality: to look at data, extract meaning from it, and make better business decisions and recommendations because of it. — Jeff Stark , M.S. in Finance Program Director and Associate Professor of Finance

M.B.A.: A Well-Rounded Approach

An M.B.A. provides a comprehensive education in the essential aspects of business management and leadership. Core subjects typically include strategic management, organizational behavior, marketing, operations management, accounting, finance, and economics. This well-rounded approach familiarizes students with how different business functions work together to contribute to an organization’s overall success.

M.B.A. programs, including the Flex MBA at MTSU , typically offer concentration options and a variety of electives so students can tailor their education to their interests and career goals. Practical learning experiences during an M.B.A., such as internships and case studies, enable students to apply theoretical knowledge to real-world business problems.

What Can You Do With Your Graduate Degree?

Though there is some overlap, M.S. in Finance and M.B.A. degrees qualify graduates for different types of jobs . Before you decide on a program, consider whether you seek a position that relies on specialized financial expertise, or if your career path requires a broader understanding of business management.

An M.S. in Finance prepares graduates for careers such as:

*The national average for job outlook growth is 3%

Many M.B.A. programs offer specializations or concentrations. As such, you can pursue a wide variety of roles . Here are some career paths you can pursue with a specialized M.B.A.:

Target Demographic: Who These Degrees Are For

M.s. in finance: for the financial specialist.

An M.S. in Finance is geared toward recent bachelor’s degree graduates who want to specialize in finance and working professionals who seek to enhance their technical skills and advance their careers. These programs are also suitable for individuals hoping to pivot into finance from other fields, such as business administration, economics, or accounting. An M.S. in Finance degree is also an excellent first step for individuals who do not have business experience, but are looking to break into the finance field.

M.B.A.: For the Upward Leader

M.B.A. programs typically attract mid-career professionals who are looking to advance into leadership roles at the manager or executive levels.

How Long Does It Take to Complete a Business or Finance Degree?

M.S. in Finance degrees are often pursued immediately after completing a bachelor’s degree. These specialized programs typically last 1-2 years, depending on the student’s course load and program requirements. At MTSU, students can complete their M.S. in Finance coursework in one year as full-time students.

For M.B.A.s, some individuals may begin their degree directly after undergraduate studies, but it’s typical to gain a few years of work experience first. Like an M.S. in Finance, M.B.A.s usually take 1-2 years to complete.

Depth vs. Breadth: How You’ll Learn

An M.S. in Finance dives deep into core ideas and issues in the finance field. With curriculums that cover specialized analytical, quantitative, and strategic skills, these programs prepare students to tackle complex financial challenges. Students may get the opportunity to gain hands-on experience through case studies, which prepare them for high-level careers in investment banking, asset management, financial consulting, and corporate finance.

In contrast, an M.B.A. takes a more generalized approach to teaching business and management. In these programs, students gain a comprehensive understanding of operations, finance, marketing, and human resources. An M.B.A. also emphasizes leadership, and graduates enter the job market with the knowledge and practical necessary for management and executive roles.

Deciding Between an M.S. in Finance vs. an M.B.A.

Whether an M.S. in Finance or an M.B.A. is right for you will ultimately depend on your strengths, weaknesses, and career goals. M.S. in Finance programs usually accept individuals directly out of college, which means you can enter the job market sooner. M.B.A. programs often request several years of work experience for admission, but graduates enter the profession prepared for leadership roles.

At MTSU, the M.S. in Finance and M.B.A. also differ in structure. The M.S. in Finance uses a cohort structure, which groups students with a set of peers with whom they complete their entire graduate journey. The relationships formed among your cohort is a valuable network and prepares you for the collaboration and communication necessary in the professional world.

Earn your M.S. in Finance From the MTSU Jones College of Business

Gain the skills you need to succeed in the competitive finance world. We blend asynchronous coursework with virtual synchronous components, granting students the flexibility to pursue their finance degree from any location while fostering valuable connections. Whether you prefer a part-time or full-time schedule, our program accommodates your needs, with all synchronous classes held in the evening to ensure the success of full-time working students.

MTSU’s Jennings A. Jones College of Business is among the top 1.5% business schools in the world with Association to Advance Collegiate Schools of Business (AACSB) accreditation in both accounting and business. Our faculty of award-winning educators, researchers, and entrepreneurs provide students with cutting-edge education in management, finance, big-data tools, and business communication.

Download a program brochure to learn more or start your application to the M.S. in Finance.

Learn more about the MTSU Master of Science in Finance by filling out the fields below and downloading a program brochure . You can also call us toll-free at 888-891-6780 to talk with one of our enrollment representatives.

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Students in our PhD programs are encouraged from day one to think of this experience as their first job in business academia—a training ground for a challenging and rewarding career generating rigorous, relevant research that influences practice.

Our doctoral students work with faculty and access resources throughout HBS and Harvard University. The PhD program curriculum requires coursework at HBS and other Harvard discipline departments, and with HBS and Harvard faculty on advisory committees. Faculty throughout Harvard guide the programs through their participation on advisory committees.

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There are many paths, but we are one HBS. Our PhD students draw on diverse personal and professional backgrounds to pursue an ever-expanding range of research topics. Explore more here about each program’s requirements & curriculum, read student profiles for each discipline as well as student research , and placement information.

The PhD in Business Administration grounds students in the disciplinary theories and research methods that form the foundation of an academic career. Jointly administered by HBS and GSAS, the program has four areas of study: Accounting and Management , Marketing , Strategy , and Technology and Operations Management . All areas of study involve roughly two years of coursework culminating in a field exam. The remaining years of the program are spent conducting independent research, working on co-authored publications, and writing the dissertation. Students join these programs from a wide range of backgrounds, from consulting to engineering. Many applicants possess liberal arts degrees, as there is not a requirement to possess a business degree before joining the program

The PhD in Business Economics provides students the opportunity to study in both Harvard’s world-class Economics Department and Harvard Business School. Throughout the program, coursework includes exploration of microeconomic theory, macroeconomic theory, probability and statistics, and econometrics. While some students join the Business Economics program directly from undergraduate or masters programs, others have worked in economic consulting firms or as research assistants at universities or intergovernmental organizations.

The PhD program in Health Policy (Management) is rooted in data-driven research on the managerial, operational, and strategic issues facing a wide range of organizations. Coursework includes the study of microeconomic theory, management, research methods, and statistics. The backgrounds of students in this program are quite varied, with some coming from public health or the healthcare industry, while others arrive at the program with a background in disciplinary research

The PhD program in Organizational Behavior offers two tracks: either a micro or macro approach. In the micro track, students focus on the study of interpersonal relationships within organizations and the effects that groups have on individuals. Students in the macro track use sociological methods to examine organizations, groups, and markets as a whole, including topics such as the influence of individuals on organizational change, or the relationship between social missions and financial objectives. Jointly administered by HBS and GSAS, the program includes core disciplinary training in sociology or psychology, as well as additional coursework in organizational behavior.

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The field of finance covers the economics of claims on resources. Financial economists study the valuation of these claims, the markets in which they are traded, and their use by individuals, corporations, and the society at large.

At Stanford GSB, finance faculty and doctoral students study a wide spectrum of financial topics, including the pricing and valuation of assets, the behavior of financial markets, and the structure and financial decision-making of firms and financial intermediaries.

Investigation of issues arising in these areas is pursued both through the development of theoretical models and through the empirical testing of those models. The PhD Program is designed to give students a good understanding of the methods used in theoretical modeling and empirical testing.

Preparation and Qualifications

All students are required to have, or to obtain during their first year, mathematical skills at the level of one year of calculus and one course each in linear algebra and matrix theory, theory of probability, and statistical inference.

Students are expected to have familiarity with programming and data analysis using tools and software such as MATLAB, Stata, R, Python, or Julia, or to correct any deficiencies before enrolling at Stanford.

The PhD program in finance involves a great deal of very hard work, and there is keen competition for admission. For both these reasons, the faculty is selective in offering admission. Prospective applicants must have an aptitude for quantitative work and be at ease in handling formal models. A strong background in economics and college-level mathematics is desirable.

It is particularly important to realize that a PhD in finance is not a higher-level MBA, but an advanced, academically oriented degree in financial economics, with a reflective and analytical, rather than operational, viewpoint.

Faculty in Finance

Anat r. admati, juliane begenau, jonathan b. berk, michael blank, greg buchak, antonio coppola, darrell duffie, steven grenadier, benjamin hébert, arvind krishnamurthy, hanno lustig, matteo maggiori, paul pfleiderer, joshua d. rauh, ilya a. strebulaev, vikrant vig, jeffrey zwiebel, emeriti faculty, robert l. joss, george g.c. parker, myron s. scholes, william f. sharpe, kenneth j. singleton, james c. van horne, recent publications in finance, dollar safety and the global financial cycle, valuing long-term property rights with anticipated political regime shifts, monetary tightening and u.s. bank fragility in 2023: mark-to-market losses and uninsured depositor runs, recent insights by stanford business, a “grumpy economist” weighs in on inflation’s causes — and its cures, the surprising economic upside to money in u.s. politics, your summer 2024 podcast playlist.

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MBA Course of Study

Mba cost and reward, cfa is grueling and prolonged, who gets a cfa, the bottom line.

• Degrees & Certifications

MBA or CFA: Which Is Better for a Career in Finance?

Travel + Leisure / Jessica Juliao

Financial advisors, stockbrokers, and investment professionals of all stripes swim in a sea of degrees and certificates. Because each title comes with its own three- or four-letter abbreviation, the designations are known as the “alphabet soup” of the investment advice industry.

Two of the most arduous but financially rewarding titles are the master of business administration (MBA) and the chartered financial analyst (CFA) . Anyone considering a career in finance or investing or a role as a financial advisor should examine the differences between these two designations. Understanding their costs and rewards can help you decide if you want to invest the time, resources, and money in an MBA or a CFA.

Key Takeaways

• For financial professionals, two of the most significant credentials to have are master of business administration (MBA) and chartered financial analyst (CFA).
• An MBA normally takes two years of full-time study in a program that will cost at least tens of thousands of dollars if not over $100,000, with students taking classes that cover all aspects of the business world and having the opportunity to focus on a specific industry.
• A CFA takes significant self-study, work experience, and the passing of three exams; it’s cheaper than an MBA—under $5,000—and focuses more specifically on investment analysis, portfolio strategy, and asset allocation.
• The average starting salary of those with MBAs is around $97,000, while those with a CFA might see an average starting salary of $104,000.

An MBA typically takes two years of full-time study, but alternative programs exist as well. Classes cover various aspects of running a business with courses ranging from human resources to accounting , from marketing and sales to managing operations, and from supply chains to technology. Students get MBAs in specific topics—such as healthcare, communications, or information systems technology—depending on which field most interests them. These degrees still stress broad knowledge of core business concepts.

Getting an MBA is usually pricey. Students are not only paying for two years of full-time graduate school or its part-time equivalent but also missing out on potential earnings during that time. A two-year MBA program can end up costing far north of $100,000 from a top business school, not counting room, board, books, and peripheral expenses. However, for a less prestigious program, normal university tuition is likely to only be in the tens of thousands. Either way, it's going to cost you a lot of money.

The amount of debt for MBA graduates is high. As of December 2023, MBA graduates averaged $82,439 in total student debt with $63,517 coming from MBA studies and the remainder left over from their undergraduate degree.

Also, consider the effects of any wages that you forgo while in school. Of course, financial aid can reduce this burden somewhat, and some corporations will assume a portion of expenses for employees seeking an MBA . The return on your investment , however, might make it worthwhile. Getting an MBA from a well-regarded school can make you more attractive to employers because it demonstrates drive and work ethic, not to mention a solid network. It provides lifelong professional contacts with scores of other Type A overachievers with whom you’ve shared a long, tough challenge. And the average base salary for an MBA graduate is $97,000, according to PayScale.

If you want a management role at a large company or those in areas like marketing, consulting, finance, or investment banking , you would do well to at least consider getting an MBA. Healthcare is another field where mid- and upper-level management is increasingly populated with MBAs to better cope with changes in insurance , government regulation , and patient record-keeping standards.

The CFA designation, first introduced in 1962, provides those who pass three exams, known as charterholders, with specialized skills like investment analysis , portfolio strategy, and asset allocation . It is less general than an MBA and quite coveted by investment professionals. Regulatory bodies in 28 countries and territories recognize the charter as a proxy for meeting certain licensing requirements, according to the CFA Institute , which administers the test and awards the certification.

Financially, getting a CFA designation is cheaper than earning an MBA, as the program is based on self-study rather than classroom instruction. The only required expense is exam fees. These costs vary depending on how early you register. Early registration costs $940 per exam, and standard registration costs $1,250 per exam. Plus, there is a one-time enrollment fee of $350.

While affordable, the time required to earn a CFA is substantial. Each CFA exam requires at least 300 hours of study. Each of the three CFA exams has two sections and takes about four and a half hours. For 2024-2025, Level I is offered in February, May, August, and November. Level II is held in May, August, and November, while level III is offered in August and February.

How long the program takes will depend on your available time to prepare, and when you decide to take the exams. The CFA Institute reports that it takes over four years, on average, for most people to obtain their charter. The pass rate for each section is typically under 50% each year and sometimes much lower than that, making the CFA one of the most grueling tests that you're likely to face.

In fact, the general consensus is that the CFA exam is harder to pass and requires more study than the certified public accountant (CPA) exam . And that exam is hardly a cakewalk. Forum commentators on the CPA information and review site who are familiar with both exams generally view the CFA as the greater challenge requiring more study time. It’s worth noting that as the CFA exam includes audit problems, those with an accounting background have an advantage in taking it.

Some very motivated individuals get both MBA and CFA credentials, giving them training in both the broad and more specific aspects of business, wealth, and portfolio management.

Payscale puts the national average salary for a CFA at $104,000, according to its surveys.  What sort of professionals might choose to get a CFA ? “The most traditional career paths for which the CFA charter has been most relevant are for research analysts and those who might go on to be portfolio managers,” says Stephen Horan, Ph.D., CFA, CIPM, the former managing director and co-lead for education at the CFA Institute. “The charter, however, is a generalist investment credential. Increasingly, it is a useful resource for a wide range of careers, such as traders, brokers, academics, risk managers, regulators, and chief executives. These nontraditional roles are the single largest category of charterholders.”

Some motivated individuals pursue both MBAs and CFAs. Horan notes that MBAs and CFAs can be complementary to each other: “Traditional MBA programs are broader than the CFA program, covering topics such as management, marketing, and strategy, while the CFA program provides deeper coverage of investment management than typical MBA programs.”

"Having both an MBA and a CFA is especially valuable for portfolio and corporate management positions," Horan adds. Charterholders are increasingly working in corporate finance roles that would be naturally populated by MBAs.

The average age of a CFA level I test taker was 26.6 in 2018. However, these days, younger students frequently enter the program in their last year of school or shortly thereafter. The CFA Institute permits students within 23 months of graduation to take Level I and students within 11 months of graduation to take Level II. Some graduate schools teach the CFA program within their MBA coursework, allowing students to obtain a degree and prepare for the certification at almost the same time.

Is the Master of Business Administration (MBA) Good for a Career in Finance?

Compared to the chartered financial analyst (CFA), a master of business administration (MBA) provides a broader overview of business principles. An MBA teaches students valuable analytical and leadership skills that prepare them for opportunities across a number of sectors and careers in finance. For instance, MBA graduates may go on to pursue careers as consultants, chief financial officers , financial analysts, or financial managers.

Is the Chartered Financial Analyst (CFA) Good for a Career in Investment Banking?

The CFA serves as a valuable credential for those interested in a career in investment banking. Its rigorous curriculum involves financial modeling skills, corporate finance, ethics, and financial analysis, to name a few. Along with investment banking, CFA charterholders often pursue careers in commercial banking, consulting, and asset management.

MBA or CFA: Who Earns More?

According to Payscale, the average base salary of an MBA graduate is $97,000, while the average for those holding a CFA designation is $104,000.

What Is the Cost of an MBA vs. a CFA?

Typically, an MBA will cost at least tens of thousands of dollars if not more than $100,000, depending on the program. By contrast, a CFA designation will cost significantly less: under $5,000.

How Long Does It Take to Complete an MBA vs. a CFA?

Typically, an MBA will take two years of study, although some programs offer one-year MBAs. The CFA includes three exams—levels I, II, and III—which take an average of over four year to complete.

In the end, both the MBA and the CFA are valuable. Not only does an MBA enhance job prospects and earning potential and help build a broader network, but in some cases, firms will require an MBA for certain leadership or management roles.

The CFA, however, is widely coveted by professional investors who work at money managers and registered investment advisors , the types of firms where many financial advisors get their first jobs and initial training and background.

Education Data Initiative. " Average Graduate Student Loan Debt ."

Payscale. “ Master of Business Administration (MBA) Degree .”

CFA Institute. " How to Become a CFA Charterholder ."

CFA Institute. “ Celebrating 50 Years of the CFA Charter .”

CFA Institute. “ Regulator and Program Recognition .”

CFA Institute. “ Exam Information, Dates and Fees .”

CFA Institute. " Level I CFA Exam Structure ."

CFA Institute. " CFA Charter ."

CFA Institute. “ 1963 – 2024 Candidate Examination Results .”

300Hours. “ CPA vs CFA, Which Is More Difficult? ”

Payscale. “ Salary for Certification: Chartered Financial Analyst (CFA) .”

eFinancialCareers. " What’s the Perfect Age to Earn Your CFA Charter? "

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MBA vs. Master of Finance: What's the Difference?

Business is a vast field that encompasses various master's degree programs tailored to different specializations.

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Among these options, MBA vs. Master of Finance stands out as a common dilemma for individuals looking to advance their careers. These two programs offer distinct paths to success within the business world, each with its unique focus, curriculum, and career outcomes. So, let's explore the difference between an MBA and a Master's in Finance to help you make an informed decision about your academic and professional pursuits.

What is an MBA?

An MBA, or Master of Business Administration, is a graduate-level degree providing individuals with advanced business management and administration knowledge and skills. Such programs emphasize skill development in leadership, decision-making, problem-solving, and strategic thinking, preparing graduates for leadership roles in diverse industries and organizations.

What is a Master of Finance?

A Master of Finance degree, often abbreviated as MFin or MSF, is a graduate-level program focused on developing expertise in financial analysis, risk management, and investment strategies. This degree equips individuals with advanced quantitative and analytical skills essential for roles in corporate finance, investment banking, asset management, and financial consulting.

Key Differences Between MBA and Master of Finance

While at the same academic level, the Master of Business Administration and Master of Finance diverge significantly in their focus, curriculum, and eventual career trajectories.

Focus and Specialization

Understanding each degree's primary area of study and the depth and specificity of knowledge in that area is crucial for comparing MBA and Master of Finance programs.

An MBA program provides students with a holistic understanding of business management and administration. MBA students learn to analyze complex business challenges, make strategic decisions, and implement innovative solutions. The emphasis is on developing well-rounded professionals capable of leading organizations in dynamic and competitive environments.

Master of Finance

On the other hand, a Master of Finance degree focuses specifically on finance-related topics and provides students with an in-depth understanding of financial theory, analysis, and practice. The emphasis is on developing specialized skills and knowledge relevant to careers in finance, such as investment banking, corporate finance, asset management, and financial consulting. 

While there may be some overlap in curricula between MBA and Master of Finance programs, with both typically covering foundational business and finance topics to some extent, most courses differ significantly.

Typically, an MBA curriculum covers a wide range of subjects, including ones focused on leadership, business intelligence, economy, marketing, operations, human resources, and strategy. Moreover, MBA programs often include experiential learning opportunities such as case studies and simulations to reinforce theoretical knowledge with practical experience.

The curriculum of a Master of Finance program typically includes courses in financial analysis, investment management, risk management, financial modeling, and derivatives. Students learn to evaluate financial markets, assess investment opportunities, and manage financial risks effectively. Additionally, Master of Finance programs also often incorporate research assignments and industry partnerships to enhance students' practical skills.

Program Duration and Structure

The duration and structure of MBA and MFin programs vary across institutions and typically depend on factors such as study format and pace.

A full-time MBA program generally lasts about two years, with students completing a set curriculum of core and elective courses. However, the timeframe is modified when the program format changes. For example, part-time MBA programs allow students to spread their coursework over a longer period, often extending to three or four years to accommodate working professionals' schedules.

Additionally, online MBA programs offer flexible scheduling options, allowing students to complete their studies remotely within two to three years. UND offers a top-ranked, AACSB accredited online MBA program with an innovative curriculum and quality education in a synchronous online environment.

Master of Finance programs typically last shorter than MBA programs, ranging from one to two years for full-time students. Similarly, part-time options may be available, allowing students to extend their studies over a longer period to accommodate work or other commitments.

Admissions Criteria

Admissions criteria may vary from one program to another, reflecting each institution's unique priorities and standards. However, typically, you can expect the following:

MBA programs look for candidates with strong academic performance in their undergraduate studies, which indicates their ability to excel in a rigorous academic environment. Additionally, they often prioritize applicants with relevant work experience, demonstrating practical skills and leadership potential. 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 . Candidates who have excelled in undergraduate coursework related to finance demonstrate a strong understanding of financial principles and methodologies, which is crucial for success in a Master of Finance program. 

Relevant professional experience in finance or related industries can enhance an applicant's candidacy, as it indicates practical knowledge and skills applicable to the field. 

Career Opportunities

While MBA and Master of Finance graduates may work in similar environments, they often pursue different career paths due to the distinct skill sets and knowledge acquired in each program. Let's explore the diverse career opportunities available to graduates of each program:

Graduates of MBA programs have a wide array of career options spanning various industries and functions, including:

• Operations Manager
• Business Development Manager
• Management Consultant
• Marketing Manager
• Entrepreneur/Startup Founder
• Project Manager
• Supply Chain Manager

Individuals with a Master of Finance degree can pursue specialized roles in the finance sector, such as:

• Financial Analyst
• Investment Banker
• Portfolio Manager
• Risk Analyst
• Financial Planner
• Corporate Finance Officer
• Financial Controller

Considerations for Choosing Between an MBA and a Master of Finance

Before choosing and pursuing one of these advanced business degrees, it's crucial to carefully consider various factors to ensure the best fit for your career aspirations and personal interests. Here are key considerations to ponder when choosing between an MBA and a Master of Finance.

Individual Career Goals and Aspirations

Your career goals and aspirations are key in determining whether an MBA or a Master of Finance aligns better with your objectives. While an MBA offers a broader perspective and prepares you for leadership roles across diverse industries, a Master of Finance provides specialized knowledge tailored for finance-centric positions. Whether you aim for executive leadership, entrepreneurship, or specialized finance roles, understanding how each program supports your career trajectory is essential.

Personal Strengths and Interests

Your strengths and interests should also guide your decision-making process. So, consider how the content and focus of each program resonate with your skills, preferences, and career aspirations. Reflect on whether you thrive in a multifaceted business environment or prefer delving deep into financial analysis and strategy, ensuring that your chosen path aligns with your strengths and passions for long-term satisfaction and success.

Industry Trends and Job Market Demands

Staying updated on current industry trends and job market demands is another crucial factor. Analyze how these trends may impact the value and demand for graduates in both fields across various sectors and roles. Understanding the evolving landscape of business management and finance will help you anticipate future opportunities and make strategic decisions aligned with market demands.

Return on Investment and Financial Considerations

Consider factors such as tuition costs, potential scholarships or financial aid opportunities, and the expected return on investment. Evaluate each program's salary potential, career advancement opportunities, and overall financial implications to ensure that your chosen path aligns with your financial goals and circumstances.

Potential for Career Advancement and Long-term Growth Prospects

Lastly, consider how the skills, knowledge, and network acquired through these programs may impact your career progression and future opportunities. By envisioning your long-term career goals and assessing the growth prospects offered by each degree, you can make a strategic decision that propels your career forward.

The Bottom Line

In the end, the choice between pursuing an MBA or a Master of Finance hinges on personal preferences, career goals, and individual strengths as both paths offer promising opportunities for personal and professional growth.

At UND, we understand the importance of tailored education and are here to support you in thriving in the business world.

Can I pursue an MBA or a Master of Finance degree online, or are they typically offered as on-campus programs? ( Open this section)

Both MBA and Master of Finance programs are often available in online formats, providing flexibility for students who prefer remote learning.

Can someone with an MBA pursue a career in finance, and can someone with a Master of Finance pursue a career in business administration? ( Open this section)

Yes, individuals with an MBA can pursue careers in finance, especially if they specialize in finance-related courses during their program. Similarly, individuals with a Master of Finance can transition into business administration roles, leveraging their financial expertise in managerial positions.

Can I pursue an MBA or a Master of Finance degree part-time while working, or are they primarily full-time programs? ( Open this section)

Of course! Many institutions offer part-time options for MBA and Master of Finance programs, allowing students to balance their studies with work commitments.

What types of financial aid or scholarships are available for students pursuing an MBA or a Master of Finance? ( Open this section)

Financial aid and scholarship opportunities vary depending on the institution and program. Students may be eligible for grants, scholarships, loans, or employer sponsorship programs.

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MS Finance vs. MBA in Finance: Which One is Right for You?

By Jong Eun Jung

So you want to attend a finance graduate program — but you’re not sure whether a Master of Science in Finance (MSF) or an MBA with a finance concentration is the right fit for your career goals. While both of these degrees are offered by business schools, both an MS Finance and an MBA are tailored to different types of candidates and set you up for slightly different jobs after graduation. Here’s what you need to know as you weigh your options.

Considering background and experience level

Maura Clark

Most MS Finance programs are designed for students two years or less out of undergrad, with minimal finance experience. On the other hand, most MBA students have an average of 4-5 years experience. Usually, the students debating between the two programs have two or three years of experience, so they’re right on the edge. “I always encourage them to talk to (an MSF recruiter and) an MBA recruiter, because it’s really going to be very unique to each person of why and when they want to get a graduate degree and what they want to do,” said Maura Clark , the Director of Admissions for the Vanderbilt Business MSF program.

The curriculum of the two degrees are different

The biggest distinction between these two degrees are the paths to graduation. The MBA is two years long while MS Finance programs usually take half that. For example, the MSF at Vanderbilt Business is 10 months long. “Because (the MSF is) a one year program, it’s very intense,” said Betsy Karounos , Senior Associate Director of Academic Programs

The difference in program length is due to the curriculum. For the MSF program, both core classes and electives must all be focused in finance. On the other hand, as a generalized degree, an MBA has more leeway. Out of the 62 required credits at Vanderbilt Business, 23 are for core courses that build up a foundation in general management in the first year. Out of the remaining credits, 12 can be used for the finance concentration.

While an MSF is more concentrated, an MBA has more flexibility

Betsy Karounos

While MSF students at certain programs, including Vanderbilt Business, can choose some electives, they must all fall within the field of finance. Meanwhile, MBA candidates can complete more than one concentration, so a student could specialize in both finance and marketing for example. In addition, MBAs have access to a broader range of courses to hone different kinds of skills beyond just finance. The flexibility of the curriculum also allows an MBA student to switch tracks if they decide finance isn’t for them after taking a core introduction class. “There are some things that are available to (MBA candidates) that are not to MSF, such as the opportunity to fill their tool box with other skills (that can help them get) a management position,” Karounos said.

There are different starting points on the career path.

Although MSFs and MBAs can have potentially similar career paths, such as investment banking, they have different starting positions. After earning an MSF, students will go into entry-level positions, while MBA graduates will usually be recruited into mid-level manager roles. “So within finance, we see MBA graduates — if we use banking as the example — going in as associates, whereas our MSF students going into banking start as analysts,” Clark explained.

Since the starting points are different, so are the salaries: MBAs will have higher starting salaries than MSFs since they already have past work experience, have learned more business skills than just finance, and therefore secure higher-level roles after graduation. This can be seen by comparing the Classes of 2018, where MBAs had an average starting salary of $118,888 while MSFs had one of $78,343 .

So, which program is right for you

If you’re still debating between an MS Finance and an MBA finance concentration, Clark recommends that you talk to each school about the options to see whether an MSF or an MBA is right for you. “I think it’s very individual to the person and where they are at that point. So I always encourage candidates to call schools and talk to the admissions representatives,” she said.

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MBA vs PhD in Economics

Read a summary or generate practice questions using the INOMICS AI tool

Every year thousands of economics students decide to continue education, either straight away after graduation or after a year or two of “real world” work experience. Often at this point comes the question: should I pursue a PhD or enroll in a Master of Business Administration program?

MBA and PhD programs have the potential to transform your career. A PhD allows you to become a professor and pursue a lifetime of research while an MBA can open up job opportunities at the top of business and drastically increase your salary expectations. No wonder it’s a difficult decision for many people.

INOMICS as the leading career website for economists wants to help you make the right decision. Therefore, we are going to run through the key factors in this decision: career direction, requirements and cost. For a quick overview check out our video on just this topic!

Requirements

Most Master of Business Administration programs require that you have at least two years of work experience. PhD programs meanwhile normally require that you have already attained a master’s degree or have an exceptional bachelor transcript.

Obviously, your academic past will shape your choice between a doctorate and an MBA. A good tip is to read some actual MBA and PhD program overviews and their requirements. Transform a theoretical question into a practical choice. You can find hundreds or the latest MBA and PhD course right here on the INOMICS website.

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Career direction.

The key question is what ultimate career direction do you want to go in? Ask yourself this question, would you like to end up working in academia or as a researcher? If the answer is yes, then you should start by looking at PhDs. A doctorate is a pre-requisite for nearly all academic jobs. If no, then an MBA or another career training opportunity will be the better choice.

Taking a PhD can be a demanding process. It takes years of hard work with little immediate financial reward. You need to love doing research and have a genuine interest in what you are studying. If you are looking at a PhD purely in terms of future salary maximisation then best look elsewhere. There are a number of pros and cons to a career in research .

But there is more to life than amassing every last dollar, right? Harder to quantify factors such as job satisfaction and independence are often cited as pros of taking an academic route. Also, bear in mind your preference can change overtime. There are job opportunities outside of academia where having a PhD is a plus. Our advice is simply that if your end goal is to work outside academia then a PhD is typically not the best route to take.

MBA programs are designed specifically to teach you about how businesses work and set you up to thrive at the top level of business. They are focused on practical skills and knowledge and often involve group work to mimic the cooperation required by many businesses. On a reputable MBA program, the networking with other students and alumni can often be more important for opening up new and well-paid career paths than the teaching itself. If your goal is to work at the top end of the business world then an MBA is the better choice.

MBA programs are normally very expensive, however. Unlike most PhD programs where funding is often provided, there are few scholarships or funding options available for MBA's aside from expensive private loans. An MBA should be viewed as an investment. How risky that investment is depends on the quality of the MBA program. Check out the quality of the school and the career prospects of graduates before proceeding.

Both MBA and PhD programs involve a degree of risk. Either financial, in time or both. Remember, you might be able to reach your career goal without committing years of your life and potentially loads of cash on an MBA or PhD. There are always  additional courses to improve your prospects in a career in economics . Make sure you consider other routes before committing to either a PhD or MBA. If you plan to start your PhD application this autumn, download our free guide " How to successfully apply to a PhD in Economics "

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