Economics vs. Finance Degree Programs: Explaining the Difference for 2025

Co-Founder and Chief Data Scientist

Many students interested in money, transactions, and markets find it challenging to decide between an economics degree and a finance degree. The two fields overlap, but they focus on different aspects of financial systems. Economics studies how goods and services are created, distributed, and consumed, analyzing market trends and consumer behavior. Finance, on the other hand, focuses on financial systems, including banking, investments, and risk management.

Choosing the right degree also affects career opportunities. Financial analysts, who typically need a bachelor’s degree, earn a median salary of $99,010, while economists, often requiring a master’s degree, earn $115,730 annually. This article, prepared by experts in career planning, breaks down the key differences between these paths, helping students make an informed decision about their future.

Key Things You Should Know About Economics and Finance Degrees

Economics and finance degrees offer strong returns on investment: A finance degree has an average ROI of 1,842.38%, with a starting salary of $85,763 and lifetime earnings of $10.83 million. An economics degree has a slightly lower ROI of 1,707.80%, but graduates can expect similar lifetime earnings of $10.84 million.
Finance careers are growing faster than economics roles: The job outlook for financial managers (17%) and personal financial advisors (15%) is higher than for economists (6%) between 2021 and 2031. However, market research analysts—an economics-related role—are projected to see 19% growth.
Public university tuition is significantly lower than private college costs: For the 2024-2025 academic year, the average in-state tuition at public universities is $11,011, while private universities charge $43,505 on average. Some private schools offer tuition discounts of up to 56.1%.
Global career opportunities vary between the two fields: Economists work in international policy and development organizations like the IMF and World Bank, while finance graduates have roles in global investment banking, fintech, and asset management.
Both fields are shifting toward technology and sustainability: Economics is integrating big data, AI, and behavioral economics, while finance is embracing fintech, blockchain, and ethical investing as major industry trends.

What is the fundamental difference between an economics degree and a finance degree?
How do the coursework and curriculum compare in economics and finance programs?
What are the key skills developed in an economics degree vs. a finance degree?
What factors should students consider when choosing between an economics and finance degree?
What are the admission requirements for economics and finance degree programs?
Which career paths align with an economics or finance degree?
What are the flexible and affordable online learning options for these degrees?
Which certifications and accreditations enhance the value of your degree?
How do internship and networking opportunities differ between economics and finance degree programs?
How do the cost, funding, and return on investment compare for each degree?
How do the job market and salary expectations compare between economics and finance graduates?
How do global career opportunities differ between economics and finance graduates?
What are the future trends for economics and finance degrees?
Could supplementary online MBA programs boost your overall career growth?
Should an Accelerated MBA Enhance Your Career Prospects?
Could Integrating Project Management Skills Propel Your Career Further?
Other Things You Should Know About Being in Finance or Economics

What is the fundamental difference between an economics degree and a finance degree?

The key difference between an economics degree and a finance degree lies in their focus and application. Economics examines large-scale market forces and human behavior in resource allocation, while finance concentrates on money management, investments, and financial systems.

Economics: Understanding Markets and Behavior

Broad Economic Theories: Economics is a social science that studies how goods and services are produced, distributed, and consumed. It analyzes economic trends, policy impacts, and consumer behavior.
Macroeconomics vs. Microeconomics: Macroeconomics looks at economy-wide issues like GDP, inflation, and employment. Microeconomics focuses on individual markets, pricing strategies, and business decisions.
Theoretical and Policy-Oriented: Economists use data modeling to understand financial trends, predict market behaviors, and develop policies that guide economic growth.

Finance: Managing Money and Investments

Practical Financial Applications: Finance is a specialized field that deals with investment strategies, financial markets, risk assessment, and capital management.
Corporate, Personal, and Public Finance: Finance professionals work in corporate finance (managing company assets and liabilities), personal finance (wealth management, budgeting), and public finance (government spending and taxation policies).
Focus on Financial Markets: Finance majors study interest rates, stock markets, banking systems, and asset valuation to help individuals and businesses make informed financial decisions.

Economics vs. Finance: Overlapping but Distinct

While economics and finance influence each other, they serve different purposes. Investors use economic principles to anticipate market trends, while finance professionals apply these insights to develop investment strategies. Both fields are integral to understanding financial markets and business cycles, making them among the majors that make the most money. Choosing between an economics degree and a finance degree depends on whether a student prefers broad market analysis or hands-on financial management.

How do the coursework and curriculum compare in economics and finance programs?

The coursework and curriculum in economics and finance programs differ in focus, structure, and career applications. An economics degree emphasizes theoretical and analytical approaches to markets, while a finance degree focuses more on investment strategies and financial decision-making.

Economics Degree Curriculum

Analytical Focus: Economics programs emphasize theories of supply and demand, market efficiency, and economic policy.
Mathematical Rigor: Courses include calculus, statistics, and econometrics to develop data-driven economic models.
Macroeconomics & Microeconomics: Students study economic systems at both large-scale (national and global) and small-scale (individual and firm-level) perspectives.
Research-Oriented: Many economics programs prepare students for graduate studies or roles in policy-making, academia, and consulting.

Finance Degree Curriculum

Business & Investment Focus: Finance students learn about corporate finance, investment management, and risk assessment.
Technical Skills: Coursework includes financial modeling, portfolio management, and quantitative methods.
Applied Learning: Case studies and real-world applications help students prepare for careers in banking, financial planning, and asset management.
Industry Certifications: Many finance programs align with certifications like the CFA (Chartered Financial Analyst) or CFP (Chartered Financial Planner).

Both degrees provide strong analytical skills, but an economics degree is ideal for students interested in policy and market behavior, while a finance degree is better suited for those looking to manage investments and financial assets.

What are the key skills developed in an economics degree vs. a finance degree?

An economics degree and a finance degree develop different skill sets, shaping how graduates approach business, policy, and financial decision-making. Economics focuses on understanding market behavior, while finance emphasizes managing money and investments.

Skills gained in an economics degree

Analytical thinking – Economics majors analyze trends, build models, and interpret data to explain economic behavior.
Critical problem-solving – They develop structured reasoning skills to assess policies, industries, and markets.
Quantitative analysis – Courses in econometrics, statistics, and calculus strengthen data-driven decision-making.
Big-picture thinking – Economics graduates understand large-scale economic patterns and long-term financial trends.

Skills gained in a finance degree

Financial planning & investment analysis – Finance majors learn how to assess risk, manage portfolios, and make investment decisions.
Corporate financial management – They focus on cash flow, budgeting, and financial strategy for businesses.
Market & risk assessment – Finance students analyze interest rates, stock performance, and financial regulations.
Communication & ethical decision-making – Effective reporting, negotiation, and ethical judgment are crucial in finance careers.

Both degrees provide valuable skills for high-paying careers. Students looking to fast-track their studies can explore an accelerated finance degree online to gain expertise faster while preparing for professional roles.

What factors should students consider when choosing between an economics and finance degree?

Students deciding between an economics degree and a finance degree should weigh their career goals, preferred skill set, and job market opportunities. While both degrees offer strong earning potential and diverse career paths, they prepare students for different roles in business, government, and finance. For comparison, understanding the average salary with a bachelor’s in management can also help students assess how these fields align with broader business-related career outcomes.

Career paths and job opportunities

Economics degree – Ideal for those interested in policy, research, or broad market analysis. Many high-level economist roles require a PhD, but graduates can start as analysts in business, finance, or government.
Finance degree – Best for those who want to work in banking, investments, or financial management. Finance careers range from financial planning and risk management to high-profile roles in investment banking and private equity.

Industry demand and location

Finance jobs are more common in major financial hubs, while economics graduates may have more flexibility in research, government, or consulting roles.
Pairing finance with accounting or computer science can improve job prospects, especially in smaller job markets.

Both degrees can lead to rewarding careers, but students should choose based on their interests and long-term goals. It's also possible to take finance courses while majoring in economics or vice versa, allowing students to build a well-rounded skill set. Many universities offer the option to double major in both fields, which can provide broader career opportunities and make graduates more competitive in the job market.

What are the admission requirements for economics and finance degree programs?

Admission requirements for an economics degree and a finance degree vary by university, but both programs generally require strong academic performance in high school, standardized test scores, and relevant coursework in math and economics. International students may need to meet additional requirements for language proficiency.

Academic requirements

GPA and test scores – A GPA of 3.0 or higher is typically competitive. Many universities require SAT or ACT scores.
Math and economics coursework – Strong math skills are essential. Some programs require or recommend calculus and statistics. Introductory economics courses can also strengthen an application.

Application materials

Essays – Most schools require a personal statement explaining academic interests and career goals.
Letters of recommendation – Letters from teachers or counselors help universities assess an applicant’s strengths.
Extracurricular activities – Leadership roles, business clubs, or economics competitions can make an application stand out.

International student requirements

English proficiency tests – TOEFL or IELTS scores may be required for non-native English speakers.
Visa requirements – Accepted students must obtain the appropriate student visa to study in the U.S.

A bachelor's degree in either field can lead to careers in business, finance, or policy. For students looking to advance quickly, pursuing one year MBA programs can help build leadership skills and open doors to management roles.

Which career paths align with an economics or finance degree?

An economics degree and a finance degree open doors to different but sometimes overlapping career paths. Economics focuses on analyzing market systems and policies, while finance is centered on managing money, investments, and risk.

Careers with an economics degree

Economics graduates often work in research, data analysis, and policy-making. Many roles involve understanding economic trends and their impact on industries.

Economist – Conducts research and analyzes economic data to influence policies and business decisions.
Market research analyst – Studies market conditions to help businesses understand consumer behavior.
Data scientist – Uses statistical models to interpret data and make business predictions.
Statistician – Develops and applies mathematical models to solve industry problems.
Policy analyst – Works for governments or think tanks to shape economic policies.

Careers with a finance degree

Finance majors typically pursue careers in banking, investments, and financial planning. Their work revolves around managing money and assessing financial risks.

Financial analyst – Evaluates investment opportunities and financial data for businesses.
Personal financial advisor – Helps individuals manage investments, savings, and retirement planning.
Financial manager – Oversees a company’s financial health, including budgeting and forecasting.
Risk analyst – Assesses financial risks and advises on risk-reduction strategies.
Loan officer – Reviews and approves loan applications for individuals and businesses.

Both degrees provide strong foundations for leadership roles in business and finance. For those looking to advance further, pursuing online doctoral programs in leadership can help develop the expertise needed for executive and policy-driven careers.

What are the flexible and affordable online learning options for these degrees?

Online programs now offer rigorous curricula in economics and finance that accommodate working professionals and non-traditional students. These formats provide accelerated learning and flexible scheduling while maintaining high academic standards, with a strong emphasis on ensuring program accreditation and robust career support. Prospective students should assess digital learning options that minimize costs and deliver quality instruction to align with their long-term career goals, such as exploring the cheapest online business degrees.

Which certifications and accreditations enhance the value of your degree?

For students evaluating long-term career success, professional certifications and accreditations can serve as important differentiators. In finance, designations such as the CFA help validate expertise in investment analysis and risk management, while in economics, specialized certifications can signal proficiency in data-driven policy analysis and research methodologies. Accredited programs that integrate these industry standards not only reinforce academic learning but also improve job readiness and market competitiveness. Prospective students seeking a specialized edge might further explore online master of finance programs that emphasizes regulatory standards and advanced financial strategy without repeating foundational curriculum insights.

How do internship and networking opportunities differ between economics and finance degree programs?

Internship and networking experiences offer practical pathways to bridge academic theory with industry practices. Economics programs often facilitate placements in policy research centers, government agencies, or think tanks where students engage in data-driven projects and collaborative seminars. In contrast, finance programs typically secure internships in investment firms, corporate finance departments, and banking environments that emphasize market operations and financial modeling. Both degree paths provide structured networking events and mentorship opportunities designed to cultivate professional relationships and enhance career mobility. Students seeking to bolster their leadership credentials and industry insight might further consider advanced qualifications such as the best online DBA.

How do the cost, funding, and return on investment compare for each degree?

An economics degree and a finance degree have similar long-term earning potential, but their upfront costs and return on investment (ROI) vary.

Tuition and costs

Public universities: The average in-state tuition is $11,011 per year, while out-of-state students pay around $24,513.
Private universities: The average tuition is significantly higher at $43,505 per year.

In addition to tuition, students need to budget for housing, food, and textbooks, which can add thousands of dollars per year. Some private universities offer tuition discounts of up to 56.1%, making costs more manageable.

Funding options

Scholarships and grants: Offered by universities, private organizations, and government programs, these do not require repayment.
Federal and private student loans: Federal loans offer lower interest rates and flexible repayment options.
Work-study programs: These allow students to earn money while studying.

Return on investment

Both degrees typically pay for themselves within five years of entering the workforce.

Finance degree: The average ROI is 1,842.38%, with a starting salary of $85,763 and a lifetime earning potential of $10.83 million.
Economics degree: The average ROI is 1,707.80%, with a starting salary of $85,717 and a lifetime earning potential of $10.84 million.

Although finance majors have slightly higher median salaries early on, economics graduates often see greater salary increases with advanced degrees. Both degrees provide strong financial payoffs, making them solid investments for the future. For those considering a career in accounting, it's also important to research the chartered accountant salary, as it reflects the earning potential for professionals in this specialized field.

How do the job market and salary expectations compare between economics and finance graduates?

Graduates with an economics degree or finance degree have strong job prospects, but the roles and salary potential vary between the two fields. While finance professionals often work in corporate settings managing investments and financial strategies, economists tend to focus on research, policy, and data analysis.

Job market and career growth

Both degrees lead to careers with high demand, but finance roles generally see faster job growth:

Financial analysts – 9% growth (2021-2031)
Financial managers – 17% growth
Personal financial advisors – 15% growth
Market research analysts (economics-related) – 19% growth
Economists – 6% growth

Salary expectations

Finance careers:

Financial analyst – $99,890 per year

Financial manager – $156,100 per year

Budget analyst – $84,940 per year

Economics careers:

Economist – $115,730 per year

Market research analyst – $74,680 per year

Data scientist – $108,020 per year

If you're considering a finance major but prefer a broader business approach, exploring the easiest finance degree options can help you find a program that fits your goals. In contrast, top-ranking economics careers in research, policy, and academia often require a master’s or PhD, as graduate studies significantly expand career opportunities and earning potential.

How do global career opportunities differ between economics and finance graduates?

Economics and finance graduates both have strong global career prospects, but the industries and roles they enter vary. Both fields offer global mobility, with economics leaning toward policy and macroeconomic research, while finance is centered on corporate strategy and investment management across borders.

Global opportunities for economics graduates

Economists find roles in international organizations, research institutions, and government agencies focused on economic policy, trade, and development.

International Organizations & Development: Institutions like the World Bank, IMF, and United Nations hire economists for policy research, economic development projects, and trade analysis.
Financial Institutions: Global banks and hedge funds employ economists for market analysis and financial modeling.
Trade Organizations: The World Trade Organization (WTO) and regional development banks hire experts in international trade and economic policy.

Global opportunities for finance graduates

Finance professionals often work in investment firms, asset management, and financial regulation across global markets.

Investment Banking & Asset Management: Firms like JP Morgan and Goldman Sachs need professionals to manage cross-border investments.
Fintech & Risk Management: The rise of digital payments, blockchain, and financial regulations creates demand for finance experts worldwide.
Certifications & Corporate Finance: Credentials like CFA (Chartered Financial Analyst) and CFP (Certified Financial Planner) increase global job opportunities.

What are the future trends for economics and finance degrees?

Economics and finance degrees are evolving to keep pace with technological advancements, market shifts, and global challenges. Both fields are integrating data analysis, sustainability, and digital finance into their curricula, shaping the future of career opportunities.

Trends in economics degrees

Data-Driven Decision Making: Economists increasingly rely on big data, artificial intelligence (AI), and machine learning to analyze economic trends and predict policy outcomes.
Global Economic Policy & Sustainability: Governments and organizations focus on climate economics, digital currencies, and international trade policies to address economic challenges.
Behavioral Economics Growth: Companies use behavioral insights to improve business strategies, making this a growing area of study and application.

Trends in finance degrees

Fintech & Blockchain: The rise of cryptocurrency, digital banking, and decentralized finance (DeFi) is reshaping financial markets.

Risk Management & Cybersecurity: As financial crimes and cyber threats grow, finance professionals with expertise in fraud prevention and financial regulation are in demand.
Ethical & Sustainable Investing: Investors prioritize ESG (Environmental, Social, and Governance) principles, driving a shift in financial strategies.

As students consider these future-oriented degrees, many also explore interdisciplinary career paths—such as in data science or spatial analytics. For those wondering how to become a geospatial analyst, a background in economics or finance, combined with GIS training, can offer a strong foundation for analyzing spatial financial trends and supporting urban economic planning.

Could supplementary online MBA programs boost your overall career growth?

Integrating a supplemental advanced business degree with an economics or finance background can build on analytical strengths while unlocking strategic management capabilities. Advanced programs not only emphasize leadership and operational decision-making but also expose students to emerging digital trends and global market dynamics. For professionals seeking to refine their strategic vision and competitive edge, pursuing affordable AACSB-accredited online MBA programs can facilitate a smoother transition into senior management roles and broaden networking opportunities without interrupting career progress.

Should an Accelerated MBA Enhance Your Career Prospects?

An accelerated MBA can complement an economics or finance degree by bridging technical expertise with advanced managerial skills. This focused program delivers targeted instruction in leadership, strategic decision-making, and global business practices, enabling graduates to transition rapidly into executive roles. The streamlined curriculum is designed for professionals who value concise, intensive learning, allowing for swift integration of contemporary business strategies into everyday practice. For professionals seeking a fast-track path to career advancement, exploring 12 month MBA programs online is a strategic option that aligns with evolving market demands.

Could Integrating Project Management Skills Propel Your Career Further?

In today’s competitive market, combining core economics or finance expertise with structured project management skills can deliver a decisive edge. Graduates who enhance their analytical abilities with proven project management techniques tend to drive efficiency in cross-functional teams and large-scale initiatives. This multidisciplinary approach not only refines execution strategies but also improves leadership during complex project cycles. Professionals may consider exploring the quickest online project management degree programs to acquire these in-demand skills and accelerate their career trajectory without extensive time commitments.

Here’s What People Have to Say About Earning an Economics or Finance Degree

Studying economics taught me how to think critically about markets, policies, and global trends. I’ve developed strong analytical skills that help me approach problems from different angles, which has been invaluable in my job as a market analyst. The ability to understand economic patterns has made me more confident in making data-driven decisions. – Daniel

Pursuing a finance degree gave me the technical skills I needed to break into investment banking. Learning about risk assessment, financial modeling, and portfolio management prepared me for the fast-paced world of finance. Now, I work at a wealth management firm, helping clients make informed decisions about their money. – Sophia

I was torn between business and economics, but my economics degree ended up being the perfect fit. It gave me a broad understanding of how financial systems work, which helped me land a job in policy research. Every day, I get to analyze real-world economic data and contribute to reports that influence decision-making at a national level. – Javier

Other Things You Should Know About Being in Finance or Economics

What are the hardest courses in an economics or finance degree?

Some of the hardest courses in an economics or finance degree are advanced mathematics, financial modeling, and econometrics. Economics students often struggle with microeconomic and macroeconomic theory, which require deep analytical thinking and mathematical applications. Finance students find courses like derivatives, corporate finance, and investment analysis challenging due to complex calculations and risk assessments. In 2024, many universities are incorporating data analytics and machine learning into these programs, making coursework even more demanding.

Can you switch from an economics degree to a finance career (or vice versa)?

Yes, switching between an economics degree and a finance career—or vice versa—is possible. Economics graduates often transition into finance roles like financial analysis, investment banking, and risk management with additional coursework or certifications. Finance majors can move into economic research or policy by gaining experience in data analysis and economic modeling. In 2024, many professionals use online courses and certifications, such as the CFA or CFP, to bridge knowledge gaps and improve career mobility.

What extracurricular activities help economics and finance students stand out?

Extracurricular activities like finance clubs, investment competitions, and research projects help students stand out. Economics students benefit from participating in policy debates, data analysis projects, and internships with think tanks. Finance students can gain experience by joining student investment funds, trading simulations, and case competitions. In 2024, many employers look for candidates with real-world experience in fintech, blockchain, or AI-driven financial analysis, making hands-on extracurricular involvement even more valuable.

How stressful are careers in economics vs. finance?

Finance careers tend to be more fast-paced and stressful, especially in investment banking, hedge funds, and trading, where long hours and high-pressure decisions are common. Economics careers, particularly in research and policy analysis, can be demanding but often provide a more balanced workload. In 2024, work-life balance varies by role, with finance professionals experiencing higher stress due to market fluctuations, while economists may face deadlines for reports and policy recommendations. Both fields require strong analytical skills and adaptability to handle industry challenges.