Should I major in Finance or Economics?

The foundations of finance is economics. The difference is the study of economics is more academic in nature, where as finance classes tend to be more practical.

The major topics in economics are macroeconomics (how an entire economy functions) and microeconomics (studying individual participants in the economy). Much of the classwork involves abstract thinking where you are discussing hypothetical situations that are very basic so that you can narrow down a discussion to a single equation. For example, if you want to measure supply-and-demand for sneakers, you will define how many people want sneakers, how much money they have to spend and how much it would cost for a factory to produce shoes. This kind of thought exercise is intended to train you to think broadly and it is applicable to all sorts of careers after you graduate from college.

In contrast, finance classes are more practical. The goal is to help you specifically get a job in finance, on Wall Street or elsewhere. The classwork is narrowed to such topics as how a business can issue stocks or bonds and then how an investor should value those stocks and bonds. In the example above, a finance class may concern itself with how a sneaker designer could raise the money to make shoes or how much an investor should pay to own part of the sneaker factory.

In general, most colleges require that you take one or two economics classes before taking your first finance class. That can help you decide if you like the theoretical work in economics. If not, then perhaps you will find it easier to relate to finance class work.

I agree with Lisa above. Majoring in Finance as an undergrad may help get your foot in the door, but it doesn't assure you of anything. Most employers are looking for demonstrated achievement, not necessarily a narrow focus in one area. Majors in English and other social studies can do well in finance. I don't work on Wall Street, but I've had a successful, 32-year career in equipment finance. I took some micro-economics and accounting in school, and I'm good in math, but my major was I.R. The most valuable stuff I've learned has been dealing with people, polishing my communications skills and very practical things that you wouldn't generally encounter as an undergrad.

I studied finance in undergrad and during my internships on Wall Street, I met people from all different majors. You can major in the area you enjoy most and is most interesting to you - whether its anthropology, history, women's studies. Once you get there, there is a one week intensive training to train you on building financial models and performing corporate valuations. Most of the learning you do actually happens on the job, so I would say - study what you are passionate about and if that's economics or finance, that's great - but don't let that limit your decision making.