10-25-2024
If you're passionate about numbers, money and global markets, deciding between a master’s in finance or economics can shape your career in different ways. Both fields offer strong salaries and expanding opportunities, but understanding their distinctions is crucial in choosing the path that best aligns with your ambitions.
Let’s start by breaking down the essence of each discipline. Finance focuses on the management of money, assets and investments. In other words, finance focuses on managing and growing wealth, often involving activities like investment, risk management and corporate finance.
On the other hand, economics is more of a social science concerned with the production, consumption and distribution of goods and services. Economics delves into broader issues like how economies function, how resources are allocated and how policy decisions impact markets and societies.
In this guide, you'll learn the key differences in career paths, salaries and more. We’ll also explore how Purdue University’s programs in these fields stand out, helping you make the best decision for your future.
When thinking about the career possibilities with a master’s in finance or economics, it's important to note that this isn't an exhaustive list. These are some of the most common and sought-after roles in the industry.
A master’s in finance prepares you to dive into high-stakes environments, making critical decisions about investments, corporate finance, and wealth management. Here are some of the jobs you can get with a master’s in finance:
Investment Banker: These professionals work with corporations to raise capital, manage mergers and acquisitions, and advise on large financial transactions. Famous figures like Lloyd Blankfein, former CEO of Goldman Sachs, represent the pinnacle of this career path. The median salary for investment bankers in the U.S. hovers around $120,000 annually, with bonuses often pushing total compensation much higher.
Financial Analyst: Analysts focus on assessing financial data and market trends to help businesses make informed investment decisions. This role is essential in companies like BlackRock, where experts like Chairman & CEO Larry Fink lead in asset management. Financial analysts earn around $70,000 annually on an average with higher salaries available at more senior levels.
Corporate Finance Manager: As managers of a company’s finances, these professionals are key decision-makers in budgeting, financial planning and strategy. They often rise to positions like chief financial officer (CFO). In major corporations such as Microsoft, the CFO role is occupied by figures like Amy Hood, a prime example of how finance can propel your career. Median salary for corporate finance managers is $102,000 annually.
Explore our finance industry report.
A master’s in economics leads to roles that shape policies, analyze global markets and forecast economic trends. Many economists work behind the scenes to influence major decisions at the governmental or corporate level:
Policy Analyst: Working in government or think tanks, policy analysts use economic data to advise on public policies. Nobel Memorial Prize winner in Economic Sciences, Joseph Stigletz, has advised former a former US president and was a former chief economist and senior vice president for the World Bank. Economists in policy roles can earn a median salary of $65,000 annually.
Economic Consultant: Consultants provide data-driven insights to businesses or governments, advising on economic trends, forecasts, and policy impacts. Esther Duflo, a Nobel Prize-winning economist, uses her research to shape development economics. Economic consultants earn average salaries of around $90,000 but can go much higher depending on their client base.
Research Economist: These professionals, often working in academia or international organizations like the World Bank, focus on in-depth data analysis and economic research. Their work helps predict future economic conditions and influences global economic policies. A prime example is Michael Kremer, known for his O-Ring Theory of Economic Development, which looks at what makes a high-value task. Research economists typically earn an average salary of $91,000 annually, depending on their level of expertise and the institutions they work for.
Explore our economics industry report.
At Purdue, the decision between pursuing a Masters of Finance and Masters of Economics goes beyond just choosing a field of study. These programs are designed to shape distinct career paths, catering to different professional goals.
Whether you're drawn to the precision of financial markets and investment strategies or the broader exploration of economic trends and policy, Purdue offers world-class education in both areas. Each program has its own unique structure, format, and focus, ensuring you gain the specialized knowledge needed to excel in your chosen field.
Let’s take a closer look at what distinguishes these two programs.
Purdue’s STEM-certified Master of Finance is a highly ranked program that prepares students for the fast-paced, numbers-driven world of finance. Ranked #5 in North America by Best-Masters.com (2022) and #46 globally by the Financial Times (2023), this program is an immersive, on-campus experience that emphasizes practical applications and hands-on learning.
Format: Full-time, on-campus (West Lafayette, IN)
Credits: 36 credit hours
Specializations: General Finance, Corporate Finance, Wealth & Asset Management, Financial Analytics
Curriculum Highlights: Financial Management, Investments, Valuation and Financial Statements, Financial Analytics, FinTech, Financial Risk Management
Experiential Learning: Student-managed venture fund
Explore the finance curriculum.
The STEM designation of the program makes it particularly attractive for international students, allowing for up to 36 months of Optional Practical Training (OPT) post-graduation, which extends work opportunities in the U.S.
Purdue’s Online Master of Economics, ranked #1 by numerous platforms, is a cutting-edge program designed for professionals who want to enhance their analytical skills and deepen their understanding of economic theory while maintaining the flexibility to continue working.
Format: Fully online, with both part-time and full-time options available; Advanced Theory specialization follows a hybrid format
Credits: 30 credit hours
Specializations: Advanced Theory (hybrid), Business and Data Analytics, Financial Economics, Public Economics and Policy.
Curriculum highlights: Econometrics, Statistical Analysis for Economists, Consumer and Producer Theory, Macroeconomics, specialized selectives
Explore the economics curriculum.
The program's fully online format offers a convenient yet rigorous educational experience, ideal for those who seek to apply data-driven insights, economic models and policy analysis in real-world situations.
The decision between a master’s in finance or economics comes down to where your interests lie and what kind of career you want to build.
Finance is ideal for those who thrive on managing investments, working with numbers, and driving the financial growth of companies and individuals. If you’re looking for a fast-paced, hands-on role in the corporate world, this might be the right fit for you.
Economics is better suited to individuals who want to understand the big-picture trends that drive economies, shape policy, and inform decision-making on a global scale. If you’re interested in consulting, research or policy-making, economics is likely the way to go.
At Purdue, both programs offer world-class education, real-world applications, and opportunities for global engagement. Whether you choose to study finance on-campus or economics online, Purdue’s offerings are tailored to equip you with the knowledge and skills you need to excel.
Still deciding? Reach out to a finance program specialist or economics enrollment specialist.
If you would like to receive more information about pursuing a business master’s at the Mitch Daniels School of Business, please fill out the form and a program specialist will be in touch!
