Many would-be movers and shakers in worlds of high finance often wonder about the difference between a master of finance and an MBA. Believe it or not, the accurate answer is quite a lot. Read on to find out how different they really are.
Separate Boats to Same Moat?
Like most pursuits, several paths exist to business or finance career success. Perhaps due to more direct semantic associations, a master of business administration is often the preferred academic preparation. Indeed, MBAs are currently the most coveted graduate degrees in online and real world academies. While this may seem logical, individual objectives must be taken fully into account to identify the best route.
MBA and Master of Finance Core Commonalities
MBAs and master of finance degrees have fundamental similarities insofar as substantive curricular content is concerned. For instance, both include courses designed to impart knowledge of economic theories and empirical analysis methodologies.
Key Difference Between a Master of Finance and an MBA
Beyond the above basics, Master of Finance and MBA degree programs diverge in direction. To understand why, begin at the last letter the MBA acronym represents: administration. Derived from the root word administer, it has connotations of overseeing and conducting operations.
Thus, MBA training is primarily bent toward building practical skills for competent business management through hands-on work experience in real-life situations or close simulations thereof. Master of finance degree programs go strictly by the book with little or no variations from standard deviations and preset formulas of purely theoretical statistical analyses and projections.
Distinct Drawbacks with Unique Benefits
As expected, theory vs. reality holds major sway when deciding between a Master of Finance or MBA. If your heart is set on active involvement in directing hustle and bustle of big business on a daily basis, an MBA may be your best bet. Be aware, however, that great interpersonal and communications skills are mandatory prerequisites for managing biggest assets of any commercial concern – human beings.
Whether staff or patrons, people provide the ingenuity and capital that make existence possible for enterprises of all sizes. Thus, all efforts of great business managers are ultimately geared toward motivating unique individuals with an infinite variety of personalities, life experiences and cultural backgrounds.
On the other hand, you might be an introvert who prefers contemplating deep insights gained while conducting solitary research in calmer surroundings. Such settings often make ideal environs for sharp minds to glean bright ideas and inspirations that serve as bases of many innovations. This is precisely why many prestigious positions in government and private-sector research require a master of finance. Moreover, master of finance degrees are indispensable prerequisites of Ph.Ds. in finance or economics for entry into Academia’s highest echelons of tenured professorships.
Related Resource: Top 10 Best Online Master of Finance Degree Programs 2014
Bottom Line in MBA vs. Master of Finance Battle
Below are average annual salaries as reported by Payscale.com:
MBA with 1 to 4 years’ experience – $48,749 as of January 14, 2014
Master of Science in Finance with 1 to 4 years’ experience – $59,201 as of January 18, 2014
Master of Finance with 1 to 4 years’ experience – $56,010 as of January 22, 2014
While money must not be sole criterion, probable level of compensation is a legitimate consideration during contemplation of the difference between a master of finance and an MBA degree.
