Is CFA better than MBA for finance careers? #Finance

the cfa and the mba two very popular qualifications that will help you stand out in any career within the world of banking and Finance and corporate management but

how exactly do they differ from one another and which one should you do this CashNews.co is kindly being sponsored by the amazing team over at analyst prep hit the link in the CashNews.co description below to get 20 of all their cfa and frm resources what is going on youtube welcome back to the

channel today’s CashNews.co is for those of you who have long requested a CashNews.co on the comparison between the cfa and mba and which is better for you if you want to pursue a career in the world of banking and #1a73e8; text-decoration: none;">Finance we’ll touch on some of the similarities and differences the differing costs the time commitments and lots of other factors that will influence your decision in which one you should consider doing so without any further ado let’s get

straight into it all right so first and foremost you need to understand what you want specifically in your career do you want to be specifically in the world of banking none;">Finance Asset Management in the buy side of the world of financial Markets or do you want to work for a corporate in terms of a leadership position

management position working for different Industries working in a company not specifically tied to text-decoration: none;">Finance and banking but in a leadership position in a big corporate because these two are very different career paths that people pursue and they will suit the mba and they will suit the cfa differently so for example if you’re going to pursue a career

specifically in the world of investing and Finance in Portfolio management on the buy side then the cfa makes more sense because the content that you learn

in the cfa is more specific and tailored to this world if you want to improve your leadership skills your management skills if you want to understand how a business operates efficiently if you want to develop as a leader in a corporate then an mba will suit you essentially the cfa qualification

gives you deep knowledge in the world of investing and Finance whereas the mba gives you a more broader knowledge of the world of management leadership and running a business

before you go and decide whether you want to do a cfa or an mba you need to understand your current circumstances and what position you’re in because if you want to do the cfa you need to have an undergraduate degree or you need to be in the final year of your degree and in order to get the

letter cfa after your name you need to have work experience of over four years so you can pass all the exams but if you haven’t been working for four years you can’t put the letters after your name so that’s something worth considering because yes in this day and age there’s

no point doing a qualification if you can’t really shout about it if you’re using it to kind of get a career or put on your cv so on and so forth on the flip side you’ve got mbas now mbas typically are very you know the best mbas are at some of the best universities all over the

world and they will want specific requirements from you so they would typically want you to have a very good undergraduate degree they would want you some might want you to do a master’s some mbas will require you to have industry experience so one or two or three years working in an industry

before you go and do your mba so it’s worth considering these things before you make a decision on which one you want to go ahead and do so typically if you’re going to do an mba you leave the world of work and you go into your mba full-time you spend about two years to do your mba and

you’re just focusing on your mba you don’t have a day job you’re just basically you’re doing a degree full-time mba whereas if you’re gonna do the cfa typically you’re not just doing the cfa you are working a full-time job let’s say you’re working for

an investment bank you work and then after work you’re studying for your cfa or early mornings before work you’re studying for your cfa so main distinguishing factor here is an mba is full-time the cfa is part-time although the recommended hours per exam for the cfa is 300 hours per

exam study time and there’s three exams typically in terms of time scale so the mba you can complete it in two years the cfa if you pass all the exams on your first try and you do it as quick as possible it will take 18 months but on average it takes people four years and that’s because

some of the exams are really tricky not many people pass and you know you’re doing a part-time while you have a full-time job so there’s a lot of competing priorities there also it’s worth mentioning the cfa is something that you do on your own it’s kind of self-study uh

there’s not like a there’s a big cohort obviously but you’re gonna be studying on your own maybe with a few friends who are doing the cfa but compare that to an mba you are part of a big class you get networking opportunities you can meet lots of people you get headhunters coming

to your university institution and it just opens a lot more doors compared to the cfa self-study route now before we continue i need to introduce today’s CashNews.co sponsor analyst prep if you’re currently studying for the cfa or the frm or you hope to do so in the future you should

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similar products if you want a massive 20 off all analyst prep programs and resources hit the link in the CashNews.co description below and use the code afsal 20 at checkout now let’s get back to the CashNews.co all right next we’re going to talk about the financial cost because yes

some of these qualifications can be mad expensive so what are you willing to spend the cfa you can do it for at most ten fifteen thousand dollars at the minimum probably five to eight thousand dollars and most times your company if you’re working for a investment bank or an investment manager

your company will pay for it so you know that’s that that’s the cfa cost and that’s all three levels by the way and then on the other side you’ve got the mba companies tend not to pay for the mba for their employees to do it because it’s so expensive there’s no

guarantee that this individual will come back and work for this company they might end up at a competitor right so companies don’t fund mbas your mba will typically cost you anywhere between 80 to 100 000 plus and that’s a big investment that’s a lot of money and also you

don’t really do an mba when you’re working at a company so it’s kind of like say you’re at an investment bank you’re working there if you are to do an mba you have to risk leaving that investment bank doing your mba and then you’re not guaranteed a seat at that

investment bank after you graduate with your mba so you know it’s a very expensive option it does definitely make you more employable but the market can be very competitive and obviously nothing is guaranteed so you need to keep in mind the cost and your current situation the cfa costs versus

the mba cost mba costs can easily be 10 plus times that of the cfa so it’s something worth thinking about all right so believe it or not if you have the cfa or most people that have the cfa tend to earn a bit more on average than those who have an mba and you might be thinking wait a second

but an mba costs more surely you should be able to start on a higher salary blah blah blah part of me thinks the reason for this is because the cfa is very it gets you into a very specific niche right and that’s #1a73e8; text-decoration: none;">Finance and investing Portfolio management research equities investment all of that good stuff right so it’s very none;">Finance focused a lot of mbas might go work for it not necessarily Finance and investing companies or in that industry they might work in completely

different Industries consulting as well as Finance as well as i

don’t know technology healthcare so on and so forth all these other Industries and so naturally the world of color: #1a73e8; text-decoration: none;">Finance and banking tends to pay a lot more relative to other Industries and so if you’ve got the cfa you go into the

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance industry you earn a lot more or you earn more if you get an mba and you go into other text-decoration: none;">Industries you might climb you might have a bigger title so on and so forth but the data suggests that the earnings are not as much as those with cfa so typically the median compensation for a cfa charter holder with zero to five years of work experience can expect a

salary or compensation of seventy two thousand nine hundred dollars and those who have zero to five years of work experience who have an mba to their name can expect a median compensation of fifty seven thousand seven hundred dollars if you fall into the small bucket of individuals who have the cfa

and the mba and you’ve got less than five years of work experience you can expect median compensation of eighty seven thousand dollars or eighty seven thousand two hundred dollars to wrap up we’re going to talk about the pros and cons of the cfa and the pros and cons of an mba so pros

of the cfa if you have the cfa it heavily increases your chances of getting into Portfolio management types of roles Equity research types of roles any investment specific roles on the buy side in the world of banking and

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance so it helps you break into that field also it’s one of the most popular financial qualifications out there it’s widely recognized a lot of people know about it and

if you’ve got the letter cfa next to your name it does kind of give you that stamp of approval to say this individual knows what they are talking about when it comes to investing and none;">Markets and last but not least you can study for the cfa part-time so you can do your full-time job and then study for the cfa on the side for those of you that aren’t interested in you know doing it full-time and not having a job that’s a pro to be aware of in terms of the

cons you know studying for it part-time can be quite stressful because it does require a lot of work and especially if you’re working in the world of banking and none;">Finance it could be quite stressful it’s a lot of you know stress and time in your day it could be very hard to manage it so that’s one of the cons compared to an mba you don’t get as much or as many networking opportunities and you don’t see as many

recruiters and headhunters coming to your university for example compared to those individuals who are doing an mba you don’t get that exposure although once you do pass your cfa you do get invited to lots of different networking events and all of that but personally i’m i’m not

sure if they’re as good as the networking opportunities that you get when you’re doing an mba at like a top-tier university some of the pros of doing an mba include you get direct access to recruiters at some of the top banks because a lot of the investment banks and a lot of these top

companies go to you know some of the best business schools in the world and directly headhunt and recruit some of the mba candidates or do interviews there and so you get direct exposure to that another benefit is the network effects you meet lots of people on your mba class who go on to do big

things right who end up in top companies top positions so you get exposure to that network you broaden your network this is something that the cfa doesn’t give as much while you’re studying for it an mba is a big thing when you have it on your cv it stands out it’s kind of like oh

wow it’s very impressive compared to like an undergraduate degree or a master’s degree mba stands out more than all of those so it’s very very impressive and it’s a nice stamp on your cv to have an mba the downsides of an mba is that you can’t work full-time so

you’re not earning a salary whilst you’re doing your mba you need to quit your job and go and do two years to do your mba so that’s one of the downsides depending on how you look at it and then there’s the obvious factor of the cost an mba can cost easily over a hundred

thousand dollars and so that in itself is a big decision to make and when you’re already in the world of Finance and banking do you like i if you want to do an mba just

to learn or if you want to broaden your skill set and then leave the world of Finance and banking cool that will be useful but if you’re in the world of

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance and banking and you want to do an mba and then re-enter the world of none;">Finance and banking i don’t know how useful that is like you can just sit in in Finance and banking and climb so it depends on your personal goals

career aspirations and what you want you know from a cfa versus an mba what you want from doing these qualifications but it it depends on a case-by-case basis on each individual and your circumstances for more CashNews.cos on the cfa and the frm check out some of these CashNews.cos if you made it

this far smash the like button subscribe if you haven’t and i will see you in the next CashNews.co peace