Econ vs Finance

[Anonymous]

DC will be applying for college in 2021. He has taking a shine to Economics after the AP course this year. From a education/career path perspective, we foresee a double or major/minor in something business and math or CS, work for a few years and them law or MBA. Question is should DC target Finance or Econ for undergrad. I realize that they don't typically get to pick until after sophomore year but would like to target well ranked schools in one or the other. Which area has the better job prospects after undergrad - finance or Econ?

[Anonymous]

I would think Econ is more fundamental to Finance, and an Econ major would include more broad social science and humanities that I personally think are important if you're ultimately going into something like technical like Finance.

[Anonymous]

If your kid is going to a school where the business school is a separate college, it matters. This usually applies to big state universities. At some schools Econ is in the college of arts and sciences, which is usually less selective than the undergrad business college (where finance) is. So it depends on your kid’s interests. I would investigate the differences between Econ and finance (as subjects, not employment prospects).

[Anonymous]

If your kid is going to a school where the business school is a separate college, it matters. This usually applies to big state universities. At some schools Econ is in the college of arts and sciences, which is usually less selective than the undergrad business college (where finance) is. So it depends on your kid’s interests. I would investigate the differences between Econ and finance (as subjects, not employment prospects).

[Anonymous]

Depends on the school.

Economics majors at the vast majority of universities is terrible. It's basically a major for students that cannot excel in any other subject and want something vaguely "technical" for jobs.

For schools with an undergrad business school that requires applying to get into, always go with Finance, and only Economics if Economics is also within the business school (i.e. at Wharton, not the liberal arts college at Penn). At these schools, Economics majors are basically kids who couldn't get into STEM or the business school.

At the Ivies without business schools, generally the Economics major is chosen by kids that would've otherwise done finance. But
even at Harvard and MIT, the Economics majors are relatively bad compared to other majors.

It's a cash cow program, basically.

[Anonymous]

Anonymous wrote:Depends on the school.

Economics majors at the vast majority of universities is terrible. It's basically a major for students that cannot excel in any other subject and want something vaguely "technical" for jobs.

For schools with an undergrad business school that requires applying to get into, always go with Finance, and only Economics if Economics is also within the business school (i.e. at Wharton, not the liberal arts college at Penn). At these schools, Economics majors are basically kids who couldn't get into STEM or the business school.

At the Ivies without business schools, generally the Economics major is chosen by kids that would've otherwise done finance. But
even at Harvard and MIT, the Economics majors are relatively bad compared to other majors.

It's a cash cow program, basically.

I agree with your points. But you could say the same about entrepreneurship, marketing, communications, and sociology majors (the easy sounding majors) but you’d be wrong. They get jobs. Not $$$ jobs, but jobs nonetheless.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Depends on the school.

Economics majors at the vast majority of universities is terrible. It's basically a major for students that cannot excel in any other subject and want something vaguely "technical" for jobs.

For schools with an undergrad business school that requires applying to get into, always go with Finance, and only Economics if Economics is also within the business school (i.e. at Wharton, not the liberal arts college at Penn). At these schools, Economics majors are basically kids who couldn't get into STEM or the business school.

At the Ivies without business schools, generally the Economics major is chosen by kids that would've otherwise done finance. But
even at Harvard and MIT, the Economics majors are relatively bad compared to other majors.

It's a cash cow program, basically.

I agree with your points. But you could say the same about entrepreneurship, marketing, communications, and sociology majors (the easy sounding majors) but you’d be wrong. They get jobs. Not $$$ jobs, but jobs nonetheless.

Econ majors at Harvard/Yale/Princeton get $$$ jobs.

[Anonymous]

Anonymous wrote:Depends on the school.

Economics majors at the vast majority of universities is terrible. It's basically a major for students that cannot excel in any other subject and want something vaguely "technical" for jobs.

For schools with an undergrad business school that requires applying to get into, always go with Finance, and only Economics if Economics is also within the business school (i.e. at Wharton, not the liberal arts college at Penn). At these schools, Economics majors are basically kids who couldn't get into STEM or the business school.

At the Ivies without business schools, generally the Economics major is chosen by kids that would've otherwise done finance. But
even at Harvard and MIT, the Economics majors are relatively bad compared to other majors.

It's a cash cow program, basically.

Very bias view of the Ivies... really bad advice. Econ majors from Ivy League and top Liberal Arts colleges get first dibs at most undergraduate finance, tech and business jobs. They make a lot of $$$ and more than most finance majors coming out of undergrad business schools. Check out feeder schools and majors at Poets & Quants.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Depends on the school.

Economics majors at the vast majority of universities is terrible. It's basically a major for students that cannot excel in any other subject and want something vaguely "technical" for jobs.

For schools with an undergrad business school that requires applying to get into, always go with Finance, and only Economics if Economics is also within the business school (i.e. at Wharton, not the liberal arts college at Penn). At these schools, Economics majors are basically kids who couldn't get into STEM or the business school.

At the Ivies without business schools, generally the Economics major is chosen by kids that would've otherwise done finance. But
even at Harvard and MIT, the Economics majors are relatively bad compared to other majors.

It's a cash cow program, basically.

Very bias view of the Ivies... really bad advice. Econ majors from Ivy League and top Liberal Arts colleges get first dibs at most undergraduate finance, tech and business jobs. They make a lot of $$$ and more than most finance majors coming out of undergrad business schools. Check out feeder schools and majors at Poets & Quants.

At lower tier schools don’t major in Econ. Major in finance or math instead

[Anonymous]

I was an Econ major and my husband studied finance. Econ majors get jobs, even if some kids do go into it who aren’t the sharpest knives in the drawer.

I did go on to study Econ in grad school and FWIW, I love my career and my life. I earn decent money, I’m intellectually stimulated, and I don’t have crazy hours. My friends who studied finance hustle way more to varying degrees of success.

[Anonymous]

Don't ignore accounting as a major. He'd still take a few finance and econ classes and it's much more resilient to economic downturns. Accounting major/CS minor would be a killer in today's environment.

[Anonymous]

Economics is actually a very difficult degree at most colleges, so I am not sure where many of these posters are coming from. The easy path is the “business” or “management” type majors.

My Econ major kid has to take almost as much math as a math major in addition to all of the econ requirements...
Calc 1,2, and 3
Three semesters of statistics
Linear Algebra
2 semesters of Computer Programming

My kid is double majoring in epidemiology, so is also taking biostat and all of the requirements for that degree. Thinking about a career in health economics, but could go either way.

[Anonymous]

Anonymous wrote:Economics is actually a very difficult degree at most colleges, so I am not sure where many of these posters are coming from. The easy path is the “business” or “management” type majors.

My Econ major kid has to take almost as much math as a math major in addition to all of the econ requirements...
Calc 1,2, and 3
Three semesters of statistics
Linear Algebra
2 semesters of Computer Programming

My kid is double majoring in epidemiology, so is also taking biostat and all of the requirements for that degree. Thinking about a career in health economics, but could go either way.

this is what a serious econ major (macroeconomics) would need to take and this is what make him/her employable. If your DC doesn't take enough upper level quant classes, then the degree is not so valuable. this course load would surpass most finance degrees too - save a Wharton undergrad degree or similar top level b-school that offers undergrad degrees.

[Anonymous]

Econ if you want to do law. There is always antitrust law or policy options for the future. Both use economics. Econ and law are more like social sciences and as such, require more theory and writing and far less technical math or number crunching. If he does not want to pursue law, he can go for a Masters in PP, which can be obtained in less time and for less $. Think long and hard about going into law after Econ unless you really want to do something like antitrust.

If you want to pursue an MBA long term, you are better off doing Finance in undergrad. Not only is it good prep for business concepts, but it is a better segue for more competitive jobs post-MBA, from corporate finance to banking, consulting, etc.

Speaking from experience.

[Anonymous]

Anonymous wrote:If your kid is going to a school where the business school is a separate college, it matters. This usually applies to big state universities. At some schools Econ is in the college of arts and sciences, which is usually less selective than the undergrad business college (where finance) is. So it depends on your kid’s interests. I would investigate the differences between Econ and finance (as subjects, not employment prospects).

I’d argue you have it exactly backwards. The “real” economics majors, those who take high level math like multivariable calc, linear algebra, probability, econometrics, real analysis, generally are in A&S. It’s also much more difficult than the B-school variety of Econ.