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What major is most useful and needed to become a financial analyst?

I want to be a financial analyst because I like managing and saving money. I am good at math and am good with numbers. #money #money-management

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Kenneth’s Answer

Hi, Damian. I retired three years ago as a Certified Financial Planner(TM) and senior financial advisor, and I still teach finance courses at a local college. Hopefully, I can share some insight. The term "financial analyst" is a broad term. There are financial analysts who work for companies and study financial data to determine if a firm is managed efficiently. There are other financial analysts who work for investment firms and study companies with the possibility of investing in those companies. There are also financial advisers, like me, who advised individuals and businesses on the proper way to manage their money. All of the positions I mention require a sound knowledge of accounting and finance. It is also helpful to have good relationship, analytical and creative skills. A bachelor's degree would be the bare minimum. An MBA is preferred, along with an additional designation like CFA, CFP(R), or CIMA, depending on the field you follow. Don't be overwhelmed with the education I mention. If you continue to learn and improve your skills, your degrees and designations will follow. I hope this information helps! Good luck!

Kenneth recommends the following next steps:

Check out videos or book about the different types of financial analysis and financial planning.
Look at advertisements for jobs that may interest you. See what skills, education and experience that firms are seeking.
Speak to people who work in the field about what they do.
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anahi’s Answer

To become a financial analyst, there isn't a single "most useful" major, but certain fields of study are particularly relevant and common among professionals in this role. The key is to choose a major that provides a strong foundation in finance, accounting, and analytical skills. Here are some majors that are often considered beneficial for aspiring financial analysts:

1. **Finance:**
- This is the most direct and obvious choice. A degree in Finance equips you with the specific knowledge and skills required for financial analysis, including understanding financial markets, risk management, and valuation techniques.

2. **Business Administration:**
- A general business administration degree can provide a broad understanding of business operations, including finance. You can then specialize in finance courses to focus on analytical skills.

3. **Economics:**
- Economics majors learn about economic principles, market dynamics, and data analysis. This knowledge is valuable for financial analysts, especially those involved in economic forecasting and industry analysis.

4. **Accounting:**
- An accounting degree provides a strong foundation in financial reporting, analysis, and understanding financial statements. This is crucial for financial analysts who often work with financial data.

5. **Mathematics or Statistics:**
- Majors in mathematics or statistics are beneficial for the quantitative aspects of financial analysis. Financial analysts often use statistical models and mathematical techniques in their work.

6. **Computer Science or Information Systems:**
- In today's tech-driven financial landscape, having skills in programming and data analysis is increasingly valuable. Computer science or information systems majors can bring a tech-savvy aspect to financial analysis.

Remember that while the academic background is important, practical experience, internships, and certifications (such as the Chartered Financial Analyst - CFA designation) can significantly enhance your prospects as a financial analyst. Additionally, networking and staying updated on industry trends are crucial for success in this field. It's common for financial analysts to continue their education and professional development throughout their careers.
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Hilda’s Answer

If you want to become a financial analyst you will need to take specialized courses or training in the future . However, would recommend you major in an area of your interest rather than specialize so early.
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Kandarp’s Answer

Hi Damian,

Financial analysts is a broad group of jobs - it could be at a corporation, nonprofit, investment bank, personal wealth management, etc. It seems like you're interested in being a financial advisor. The most common degrees and coursework are typically accounting, finance, economics, general business, and potentially law, math, tax. There are also certifications and licenses that may be required depending on the type of work.
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James Constantine’s Answer

Hi Damian!

Embarking on the journey to become a financial analyst opens up a world of exciting possibilities! There's no single major that's a prerequisite for this career, but there are several that can significantly bolster your understanding of finance, economics, and data analysis. The most popular choices for future financial analysts are finance, accounting, economics, and mathematics.

Finance: Opting for a major in finance gives you a comprehensive insight into financial markets, investments, corporate finance, and risk management. You'll delve into fascinating subjects like financial statement analysis, portfolio management, valuation techniques, and financial modeling. This major equips you with the tools to dissect financial data, make informed investment decisions, and evaluate a company's financial health.

Accounting: Choosing a major in accounting can be a game-changer for future financial analysts. Accounting helps you understand and interpret financial statements, auditing principles, taxation regulations, and managerial accounting. This knowledge is key to analyzing company financials, assessing profitability and liquidity ratios, and evaluating an organization's overall financial performance.

Economics: An economics major lays a strong foundation in understanding macroeconomic and microeconomic principles. You'll explore topics like supply and demand analysis, market structures, economic forecasting, and monetary policy. A good grasp of economics helps financial analysts comprehend the wider economic environment in which businesses operate and its impact on investment decisions.

Mathematics: Though not as common, a mathematics degree can be a valuable asset for aspiring financial analysts. Mathematics offers a robust quantitative background that's crucial for analyzing complex financial data and developing mathematical models used in risk assessment and investment analysis. Strong mathematical skills come in handy when working with statistical analysis tools and financial software.

Besides these majors, it's vital for future financial analysts to hone their analytical skills, critical thinking abilities, attention to detail, and proficiency in using financial software and tools. Internships or part-time jobs in finance-related roles can also offer practical experience and boost your job prospects.

Remember, while a specific major can lay a strong foundation, becoming a successful financial analyst often involves continuous learning and professional certifications. Many financial analysts pursue certifications like the Chartered Financial Analyst (CFA) designation, which further endorses their expertise and opens up new career opportunities.

In conclusion, there's no one-size-fits-all answer to which major is most useful for becoming a financial analyst. Majors like finance, accounting, economics, and mathematics can lay a solid foundation for this career. Ultimately, choose a major that aligns with your interests and strengths to truly shine in the field of financial analysis.

Top 3 Authoritative Reference Publications or Domain Names Used:

Investopedia - www.investopedia.com
The Balance - www.thebalance.com
Bureau of Labor Statistics - www.bls.gov

May you be abundantly blessed!
James Constantine Frangos.
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Kasandra’s Answer

You can try Actuarial Sciences or Accounting
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Jami’s Answer

Maybe business management or accounting.
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