Study Financial Services: Degrees at a Glance
A graduate degree in financial services or a related area may prepare you for several careers. It is important to remember that many careers require just a bachelor's degree, so a graduate degree may not be necessary. A master's degree may be ideal if you have experience and are seeking a management position. A PhD program will help you become a teacher and researcher at the university level.
According to the U.S. Bureau of Labor Statistics (BLS), some professions in the financial services area have faster-than-average employment projections. The BLS indicated that employment opportunities for financial analysts were expected to increase 23% from 2010-2020. Over the same time period, the BLS predicted that personal financial advisers would see employment grow 32%. The aging U.S. population and the need for these individuals to make retirement plans will be a factor contributing to growth. The projections aren't as good for postsecondary teachers. The BLS predicted that employment for these professionals would increase 17% from 2010-2020.
| Master's | PhD | |
|---|---|---|
| Who is this degree for? | Individuals seeking entry-level or management opportunities | Individuals who want to teach or research at the university-level |
| Common Career Paths (with approximate median annual salary) | - Financial analyst ($76,000)* - Budget analyst ($69,000)* - Personal financial advisor ($67,000)* - Financial manager** ($107,000)* | (In addition to jobs available to individuals with a master's degree) - Postsecondary business school teacher ($75,000)* |
| Time to Completion | Two years full-time | 3-5 years full-time beyond master's |
| Common Graduation Requirements | - 30 credits | - Qualifying exams - Advanced coursework - Doctoral thesis and defense |
| Prerequisites | - Bachelor's degree - GRE or GMAT scores | -Bachelor's or master's degree - GRE or GMAT scores |
| Online Availability | Yes | Yes |
Source: *U.S. Bureau of Labor Statistics (May 2011 figures). Note: **Position typically requires experience in addition to a degree.
Master's Degree Programs
Master's programs teach you concepts in different financial areas, such as investments, cash management and accounting. Some relevant degrees may be offered as financial management programs. Regardless of the degree title, you can expect to take some courses in management. You may consider programs that are accredited by the Association to Advance Collegiate Schools of Business (AACSB).
Pros and Cons
Pros
- Programs specific to financial services are offered
- Online programs specific to financial services are available
- May prepare you for professional certifications
- Evening and weekend courses are available
Cons
- May not be necessary for positions that typically require a bachelor's degree
- May not replace experience when seeking a management position
- Not sufficient for teaching at the university level
Coursework and Requirements
These 2-year courses typically require around 30 credits for completion. You learn about topics related to finance in the U.S. and abroad. Typically, these programs are offered as coursework-only and do not require a thesis or capstone project. Some of the courses you may take include:
- Portfolio management
- Financial institutions and capital markets
- Financial management
- Managerial economics
Online Programs
Online programs specific to financial services are available. These programs offer coursework that is similar to traditional programs and are usually offered as coursework-only. You may want to check to ensure that a program is accredited by the AACSB or another recognized organization.
How to Get Ahead with This Degree
You may consider becoming professionally certified. The exact certification you may seek depends on your career. As a personal financial advisor, you may consider earning the Certified Financial Planner credential. If you are a financial analyst, you may earn the Chartered Financial Analyst credential. The BLS indicates that both of these certifications require you to have a bachelor's degree, several years of experience and to pass one or more exams. You may want to develop your skills in software programs such as PowerPoint and Excel, as employers may prefer individuals with these skills.
PhD Programs
While PhD programs specific to financial services are rare, programs in general finance are offered. Although these programs cover broad financial areas, you may pursue advanced research specific to financial services through your research. You may be required to select a major and a minor in specific areas, such as corporate finance and econometrics. Through these programs, you may have opportunities to attend seminars or gain teaching experience.
Pros and Cons
Pros
- Prepares you for university professor positions
- Offers advanced financial research opportunities
- Programs are flexible and allow you to pursue areas of interest
Cons
- May not be advantageous for a career in the business world
- More research-based than practical
- Programs specific to financial services are rare
Coursework and Requirements
The capstone requirement for a PhD program is the completion and defense of a doctoral thesis, a significant work of original research. Some programs may require seminars or student teaching. In addition to your financial coursework, you also take courses in research and methodology. Some of the courses in a PhD program may include:
- Introduction to probability
- Optimization models in finance
- Microeconomic analysis
- Corporate finance theory
- Econometric methods
Online Programs
Online programs related to financial services are available; some programs offer a financial concentration within a management PhD program. Some online programs offer course-based or self-directed formats. Similar to traditional programs, you will pursue original research. You should inspect a potential online program to ensure that it is properly accredited.
How to Get Ahead with This Degree
PhD programs may require that you adequately understand a computer programming language such as C, FORTRAN or MATLAB. While in school, you may consider developing your skills in these areas, because this may help when working with statistics. To increase your marketability to employers, you may want to pursue research that can be applied to many areas of finance, such as corporate governance or financial economics.
