How a Finance Degree Pays Off Outside the Workplace
One of the best parts of getting a finance degree is not that helps you find a great job that is in demand, but that it can pay huge dividends when it comes to your personal finances. With the background you gain from a degree in finance, not only will you be educated in the skills and information necessary to function in the workforce, but also to function in the real world of everyday management and decision making processes regarding your personal finances.
When it comes to finances in our personal lives, it is incredible just how little we are taught during our years in school. From elementary school forward, it is often left to our parents and personal experiences to guide us in discovering the lessons of money in our daily lives. With the exception of a possible introductory accounting class and a generalized economics class during our high school years, there is little preparation for the financial obstacles that lay in wait for us in our future. Decisions regarding credit cards, savings and checking accounts, investment options, and a slew of other important factors to our personal financial success are left largely to unwitting, inexperienced young adults to encounter head on.
Gaining an understanding of budgeting, spreadsheets, accounting, taxes, investment options, loan terms, and a variety of similar topics is what makes a finance degree so valuable even outside the workplace. When you go to buy a home or a car, your education will help you understand how the interest rate, paired with the number of payments will significantly increase the amount you pay for that property over time, and how the ‘sticker price’ is only just the beginning of what you will end up paying. When you go to the bank to open a certificate of deposit, you’ll better understand the power of compound interest as well as just how much interest you will accumulate over the term of that investment. And when you get that credit card bill in the mail with a minimum payment of $10, but a balance of a $1000, and an 18% annual interest rate, you will immediately comprehend the importance of paying the full amount off as quickly as possible.
However, there is more to having a finance degree than just being able to figure interest rates on various investments. There is also a confidence that comes with having a degree in finance that can’t be bought. With a background in accounting, investing, banking, and financial management, you will have the background to be able to communicate and negotiate with a variety of people in the world of everyday finance. When you call a bank, a credit card or loan company, an investment firm or brokerage house, you don’t have to feel like you’re having the wool pulled over your eyes by shady analysts, advisors, or brokers. Rather than finding yourself lost among unfamiliar financial terms and jargon, you’ll be better prepared to communicate effectively and knowledgably. Similarly, when you receive offers in the mail, sign a mortgage agreement, or review other financial contracts, your knowledge of finance will better allow you to read and understand the documents and conditions you are agreeing to, helping to protect you against ill-advised financial decisions.
So when it comes to getting a finance degree, it is important to remember that such an educational background can do more for you than just help you find a good job. With a degree in finance comes the ability to make educated decisions regarding your personal financial well-being. While no degree assures completely against the possibility of poor decisions, financial or otherwise in our lives, at least with a background in finance, you will have the knowledge needed to understand and weigh the probabilities involved in the financial decisions you do make.
To learn more about getting a degree in finance, visit the Finance Schools directory.