Business Administration vs. Finance Degree: An Overview
A degree in business administration or finance can lead to opportunities in both large and small organizations in the public and private sectors. Both degrees also provide a solid foundation and are good preparation for entrepreneurs who want to start their businesses.
There is often considerable overlap among the courses that business administration and finance students must take, particularly during their freshman and sophom*ore years. Both degrees involve taking a significant amount of basic math as well as accounting, statistics, economics, and business law courses.
Either degree would be beneficial in landing a future job. According to the U.S. Bureau of Labor Statistics (BLS), business and finance jobs are expected to grow 5% by 2029, with 476,200 new jobs predicted on the horizon.
Key Takeaways
- A finance degree is commonly viewed as a specialized degree while a degree in business administration is a more generalized degree.
- Both degrees involve taking a significant amount of basic math, as well as accounting, statistics, economics, and business law courses.
- A business administration or a finance undergraduate degree is considered sufficient preparation for many entry-level jobs like those in the commercial banking, money management, real estate, and investment banking sectors.
Business Administration Degree
A business administration degree, such as a Bachelor of Business Administration (BBA) or a Bachelor of Science in Business Administration (BSBA), generally offers a broad grounding in the world of commerce. In addition to analytical skills, a business administration program may focus on interpersonal or “soft” skills to a greater extent than a finance program.
For example, a program may expect its business administration graduates to demonstrate an in-depth knowledge of human resources and be able to work effectively in a team-based environment. Group projects are more common in business classes, as they help students prepare for working in teams. On the other hand, even a limited working knowledge of algebra should be more than enough to meet mathematics requirements. Depending on the program, a business administration student is likely to move on to courses in leadership and organizational behavior. On the whole, business administration majors are generalists who know something about the specialties of all the people that they manage.
The broad-based nature of the business administration degree also gives it long-term advantages in shifting job markets. Particular lines of business, such as railroads, manufacturing, and computers, rise and fall with technology. However, the experience that people gain in running businesses can be transferred from one industry to another. Students who earn business administration degrees are less likely to mistakenly invest their human capital in yesterday's vision of tomorrow.
Finance Degree
A bachelor’s degree in finance tends to be more specialized. The degree places a greater emphasis on investments and the workings of financial institutions. In addition, finance students may drill deeper into topics such as corporate and global finance, and a finance degree program may address "hard" skills such as financial analysis and accounting.
In particular, finance majors need to have a more substantial background in mathematics. A solid grasp of algebra is increasingly important as students progress in finance. Furthermore, a basic knowledge of calculus can make seemingly complex topics easier to understand. However, students can often get by without calculus in many undergraduate programs.
Graduates can typically find work in fields like banking, real estate, money management, or investment banking. A finance undergraduate degree, as well as a degree in business administration, is considered sufficient preparation for many entry-level jobs. However, some students go on to receive other certifications or advanced degrees such as a Master of Business Administration (MBA) or a Master of Science in Finance.
Getting a degree in finance also gives students a chance to learn more about investing. By majoring in finance, students can spend years studying the workings of financial markets which provides finance majors the ability to earn more in the job market and the potential to earn more on their investments.
Degrees in both business administration and finance—especially advanced degrees—will usually open doors to lucrative positions in the finance and business sectors.
Career Opportunities
According to the Bureau of Labor Statistics, the types of jobs for which graduates with either degree qualify have a strong demand and pay well. Below are some examples of average salaries in 2021 earnings and projected job growth from 2021 to 2031:
- Financial analyst Earnings: $95,570; Projected job growth: 9%
- Financial manager Earnings: $131,710; Projected job growth: 17%
- Management analyst Earnings: $93,000; Projected job growth: 11%
- Personal financial adviser Earnings: $94,170; Projected job growth: 15%
- Securities, commodities, and financial services sales agent Earnings: $62,910; Projected job growth: 10%
The Bottom Line
While degrees in business administration and finance differ in their details, both can lead to lucrative careers with both small and large companies. A bachelor's degree in business administration offers a broad grounding in the world of commerce and a bachelor’s degree in finance tends to be more specialized, placing greater emphasis on investments and financial institutions.
FAQs
Both fields offer opportunities for leadership and career advancement. business administration graduates can move into executive and managerial roles, while finance professionals can become financial managers, analysts, or even chief financial officers (CFOs).
What makes more money, finance or business? ›
We can compare jobs in the finance industry by using the job of a financial analyst as a benchmark. Based on the latest data from the Bureau of Labor Statistics, this job offers a median pay of $81,410 per year while a business degree it is $65,000.
What is the difference between a BA and a BS in finance? ›
For example, someone earning a Bachelor of Science in Finance might dive deep into the areas of mathematics, economics, and accounting but will take fewer classes focusing on literature, foreign language or history. On the other side of the coin, a Bachelor of Arts degree provides a broader education.
Which one is better between business administration and accounting and finance? ›
It ultimately depends on your career goals and personal preferences. BBA provides a broader business education, while BS Accounting focuses more specifically on accounting principles.
Is it hard to study business administration? ›
For some, it's a difficult major involving demanding coursework and critical thinking. Others think that the key to making it more approachable is understanding how it is used in the actual world. This article provides some clarity on the complexity of the process of obtaining a business administration degree.
Is a BA or BS of business administration better? ›
A Bachelors of Arts (BA) degree in business administration has a focus on liberal arts studies and general business knowledge. This means it may apply to a wider range of career paths than the more-specialized Bachelor of Science (BS) degree in business administration.
What major makes the most money in business? ›
Business schools offer general business administration degrees and concentrations in areas like leadership, entrepreneurship, and accounting. The highest-paying business majors include marketing, finance, and international business.
What is the best job for business administration? ›
Here are some popular jobs you can get with a degree in business administration:
- Accountant. ...
- Actuary. ...
- Business consultant. ...
- Business manager. ...
- Chief executive officer (CEO) ...
- Chief financial officer (CFO) ...
- Chief operating officer (COO) ...
- Data analyst.
High earning potential: Many jobs in finance offer high salaries and growth potential, making it a lucrative career choice. Diverse career opportunities: With a finance degree, you can work in various roles and industries, from investment banking to risk management to financial planning.
Do BS get paid more than BA? ›
However, as BS holders are more likely to go into profitable STEM fields, whereas BA holders are more likely to opt for humanities and social sciences, which typically pay less, BS holders do tend to earn more money.
BS programs tend to have more required core and major courses than BA programs, and may take more time to complete.
Why is business administration a good major? ›
Businesses in every sector, large or small, need leaders with management skills, as well as technological skills, to solve complex issues. As a business administration graduate, your degree will be more marketable than those of many other students. This is one of the reasons it is one of the most in-demand majors.
Should I double major in business administration and finance? ›
Finance is a core area of study for all business administration majors, but not all business students graduate with a mastery of the complex subject. Choosing it as your second major can help you feel much more comfortable applying to and working in a role that primarily deals with investments.
What is the difference between finance and business? ›
Finance is a field that deals with the management of money and investments, including personal and corporate financial planning, banking, and the issuing of securities. Business, on the other hand, refers to the production, buying, and selling of goods or services to make a profit.
Is a BS or BBA in finance better? ›
A BBA degree offers job opportunities such as account manager, budget or management analyst, procurement officer, financial analyst, HR manager, marketing manager, and more. Whereas with a BS degree, graduates have the knowledge to tackle more complex problems, which allows them to take more leadership roles.
Does finance count as a business degree? ›
Business Degree Overview
Business degrees touch on numerous subjects, including finance, management, marketing, human resources, communication, and other related business disciplines. Earning a business degree can offer students a solid foundation for a career in various roles across industries.
Is business administration a good degree? ›
Businesses in every sector, large or small, need leaders with management skills, as well as technological skills, to solve complex issues. As a business administration graduate, your degree will be more marketable than those of many other students. This is one of the reasons it is one of the most in-demand majors.
Is getting a finance degree worth it? ›
High earning potential: Many jobs in finance offer high salaries and growth potential, making it a lucrative career choice. Diverse career opportunities: With a finance degree, you can work in various roles and industries, from investment banking to risk management to financial planning.
