Pursuing A MS in Finance Degree vs. MBA Degree

[bhzmafia14]

I'm heading into my senior in school and expected to graduate in May 2011. Law school was suppose to be in my future, but after thinking about it I'm not really interested in going that route in my career path. My major is Business Administration with a minor in Economics and Finance. Whatever I plan on doing, I want to be in the field of Finance. Looking into financial advising, banking, personal investing and eventually end up being a CFO of a major corporation.
I've been doing a lot of reading online about which degree would be better to pursue and I know its best to have some work experience when pursuing the MBA. I know the MBA takes a little longer, focuses a little more on leadership abilities, etc.  I also know that both degrees may require a different test whether its the GRE or GMAT.

 I've did a few internships the past 3 summers within' certain departments, so that may add up as work experience. I want to go by December 2011 giving me a good 6 months to possibly work within' my internship some more before going to school. 

Anybody that went either route can give me their input on what may be the best way to go or may be in a similar situation as me? 

 

[bhzmafia14]

I'm heading into my senior in school and expected to graduate in May 2011. Law school was suppose to be in my future, but after thinking about it I'm not really interested in going that route in my career path. My major is Business Administration with a minor in Economics and Finance. Whatever I plan on doing, I want to be in the field of Finance. Looking into financial advising, banking, personal investing and eventually end up being a CFO of a major corporation.
I've been doing a lot of reading online about which degree would be better to pursue and I know its best to have some work experience when pursuing the MBA. I know the MBA takes a little longer, focuses a little more on leadership abilities, etc.  I also know that both degrees may require a different test whether its the GRE or GMAT.

 I've did a few internships the past 3 summers within' certain departments, so that may add up as work experience. I want to go by December 2011 giving me a good 6 months to possibly work within' my internship some more before going to school. 

Anybody that went either route can give me their input on what may be the best way to go or may be in a similar situation as me? 

 

[noskey]

Posting to see answers later.

 

[noskey]

Posting to see answers later.

 

[bijald0331]

You don't want to go to a crappy program I assume right? 6 months is not going to cut it at any great MBA program unless you are an out-of-this-world candidate which I assume you aren't. Even Harvard's new program (2+2) requires 2 years of work experience. Others want at least 3-4. Avg ages for acceptance at HBS is 26-27 which should give you a sense of other good programs. I'm pretty sure you can do an MS program right after undergrad. You better be really sure that is the field you want to be in.

MS in Finance is a lot more limiting IMO. If you really really know you want to be in Finance, I would say that is a good route. However, it all depends on what program and school you can get into. MBA gives you a ton of options. This excerpt is from a blog that I read that is the best analysis on MBA job prospects that I've seen:

Spoiler

Spoiler

Spoiler [+]

Spoiler

Broadly speaking, I lump most post-MBA jobs so far into 4 categories:

1. Finance.

So what is "finance?" I think different people will define it differently, but to me finance simply means: the business of making money with money. In other words, moving money around to create value and money. Examples are investment bankers, private equity firms, wall street traders, venture capitalists, etc. They all use their financial expertise to identify investment opportunities, whether short or long term, and leverage that expertise to make a profit. They don't actually make a tangible product. They don't sell widgets. Rather, they make a return on an investment.

This is generally a very intense and competitive field. Almost no former investment banker at HBS desires to return to investment banking, though many do so anyway for reasons of practicality. Several friends who did an "i-banking" internship last summer told me that their hours were generally from 9am to 2am each weekday (that's not a typo), while working maybe 7 hours on Saturday and again on Sunday. So why do people do it? You probably could have guessed... Finance tends to be the highest paying... though there may be people out there who also enjoy the challenge, the thrill, etc. There are also exceptions, as venture capital is not always as time intensive, but as a whole, it's a very dedicated lifestyle. There's not a lot of leadership involved (at least early in one's career), and it's a very focused, analytical profession. Many aim to do this for just a year or two to gain hard finance skills, before moving on to a totally new field. If one wants really to learn "finance," there is probably no better path.

2. Consulting

The other major group of jobs is consulting. I never heard of consulting until after I got into HBS, but it's actually the largest single demographic here. They are companies that get hired by other companies to come in and evaluate a situation, analyze a problem or a limitation, and propose a solution. For a military analogy, they basically serve as outsourced staff that come in and pitch an idea to the commander after studying your unit. The positive side of consulting is that you get exposed to a wide variety of businesses and industries. Most projects last only a few months, and you are immediately exposed to senior management despite having virtually no business background. The downside is that you are usually traveling Monday-Thursday (this I imagine gets rather difficult after long enough... a year? two years?), and from a leader's point of view, it must be incredibly frustrating to come into a company, make connections, build rapport, and then abruptly leave without real closure. You suggest a course of action which may or may not be adopted by the customer company. For many military leader's, this is not an ideal environment; you are not a decision maker, and you can never execute your own plans.

On the other hand, many people actually enjoy consulting for the same reasons some don't. They don't get bogged down with one position for too long, they have a lot of variety, and it's a relatively safe route (you never have to actually execute any of the plans).

Consulting is generally the default route for most military HBS MBA candidates possibly because it's the main field that doesn't require work experience, consulting firms love military applicants, and it's generally a great bridge to working in an industry of choice down the road. However, for the reasons listed above, it's often just considered the lesser of two evils.

For a spoof on Bankers versus Consultants, check out this YouTube video

3. General Management

General Management is not traditionally sought after as much as finance or consulting, possibly because it doesn't pay quite as much at the immediate post-MBA level. General Management however has a great deal of appeal to military people because it's the closest thing to what they were doing before business school, and has many of the traits that military people tend to appreciate: leadership, leading people/organization, project management, making things happen, building things, etc. In very broad terms, it's sort of what most people think of when they think of "business," running a project, or a team.

I would note here that entering category #1 or #2 doesn't mean you don't eventually end up in #3. For example, working at a top consulting firm may be a fast path to enter general management at a higher level down the road; higher possibly than compared to somebody who entered general management directly. I haven't figured out some these nuances yet.

4. Independent job searching (start-ups, unique opportunities)

The first three types of jobs listed above all recruit heavily on campus. The fourth major category, or bucket, is simply everything else. This can include entrepreneurship (start a business), start-ups (join a new business), or some other position that doesn't fall into the first three main categories. This is by far the riskiest of the categories, and is therefore probably least followed. However, for those who know what they want to do, and have the skills and disposition to follow it, this may end up the most personally fulfilling of all jobs. I would guess that most HBS grads eventually end up blazing towards this eventually (perhaps after 5 or 10 years). Based on school stats, about 50% of HBS grads start their own business or join a start-up within 10 years. However, it's very difficult for many to do so right after school. Some don't believe they have the experience, the confidence, or simply can't afford the risk given all the loans (and expectations) that accumulate.

So that is my perspective on recruiting as I enter it. I will certainly keep an open mind as I go through recruiting season, and perhaps I will have a new perspective when I come out the other end. There are of course many other job functions out there, but broadly speaking, the above 4 are largely inclusive.

Personally, I'm always about giving myself options. That's why I went to the best school I got into instead of Business Honors programs. I'd rather get an MBA than an MS in Finance.

 

[bijald0331]

You don't want to go to a crappy program I assume right? 6 months is not going to cut it at any great MBA program unless you are an out-of-this-world candidate which I assume you aren't. Even Harvard's new program (2+2) requires 2 years of work experience. Others want at least 3-4. Avg ages for acceptance at HBS is 26-27 which should give you a sense of other good programs. I'm pretty sure you can do an MS program right after undergrad. You better be really sure that is the field you want to be in.

MS in Finance is a lot more limiting IMO. If you really really know you want to be in Finance, I would say that is a good route. However, it all depends on what program and school you can get into. MBA gives you a ton of options. This excerpt is from a blog that I read that is the best analysis on MBA job prospects that I've seen:

Spoiler

Spoiler

Spoiler [+]

Spoiler

Broadly speaking, I lump most post-MBA jobs so far into 4 categories:

1. Finance.

So what is "finance?" I think different people will define it differently, but to me finance simply means: the business of making money with money. In other words, moving money around to create value and money. Examples are investment bankers, private equity firms, wall street traders, venture capitalists, etc. They all use their financial expertise to identify investment opportunities, whether short or long term, and leverage that expertise to make a profit. They don't actually make a tangible product. They don't sell widgets. Rather, they make a return on an investment.

This is generally a very intense and competitive field. Almost no former investment banker at HBS desires to return to investment banking, though many do so anyway for reasons of practicality. Several friends who did an "i-banking" internship last summer told me that their hours were generally from 9am to 2am each weekday (that's not a typo), while working maybe 7 hours on Saturday and again on Sunday. So why do people do it? You probably could have guessed... Finance tends to be the highest paying... though there may be people out there who also enjoy the challenge, the thrill, etc. There are also exceptions, as venture capital is not always as time intensive, but as a whole, it's a very dedicated lifestyle. There's not a lot of leadership involved (at least early in one's career), and it's a very focused, analytical profession. Many aim to do this for just a year or two to gain hard finance skills, before moving on to a totally new field. If one wants really to learn "finance," there is probably no better path.

2. Consulting

The other major group of jobs is consulting. I never heard of consulting until after I got into HBS, but it's actually the largest single demographic here. They are companies that get hired by other companies to come in and evaluate a situation, analyze a problem or a limitation, and propose a solution. For a military analogy, they basically serve as outsourced staff that come in and pitch an idea to the commander after studying your unit. The positive side of consulting is that you get exposed to a wide variety of businesses and industries. Most projects last only a few months, and you are immediately exposed to senior management despite having virtually no business background. The downside is that you are usually traveling Monday-Thursday (this I imagine gets rather difficult after long enough... a year? two years?), and from a leader's point of view, it must be incredibly frustrating to come into a company, make connections, build rapport, and then abruptly leave without real closure. You suggest a course of action which may or may not be adopted by the customer company. For many military leader's, this is not an ideal environment; you are not a decision maker, and you can never execute your own plans.

On the other hand, many people actually enjoy consulting for the same reasons some don't. They don't get bogged down with one position for too long, they have a lot of variety, and it's a relatively safe route (you never have to actually execute any of the plans).

Consulting is generally the default route for most military HBS MBA candidates possibly because it's the main field that doesn't require work experience, consulting firms love military applicants, and it's generally a great bridge to working in an industry of choice down the road. However, for the reasons listed above, it's often just considered the lesser of two evils.

For a spoof on Bankers versus Consultants, check out this YouTube video

3. General Management

General Management is not traditionally sought after as much as finance or consulting, possibly because it doesn't pay quite as much at the immediate post-MBA level. General Management however has a great deal of appeal to military people because it's the closest thing to what they were doing before business school, and has many of the traits that military people tend to appreciate: leadership, leading people/organization, project management, making things happen, building things, etc. In very broad terms, it's sort of what most people think of when they think of "business," running a project, or a team.

I would note here that entering category #1 or #2 doesn't mean you don't eventually end up in #3. For example, working at a top consulting firm may be a fast path to enter general management at a higher level down the road; higher possibly than compared to somebody who entered general management directly. I haven't figured out some these nuances yet.

4. Independent job searching (start-ups, unique opportunities)

The first three types of jobs listed above all recruit heavily on campus. The fourth major category, or bucket, is simply everything else. This can include entrepreneurship (start a business), start-ups (join a new business), or some other position that doesn't fall into the first three main categories. This is by far the riskiest of the categories, and is therefore probably least followed. However, for those who know what they want to do, and have the skills and disposition to follow it, this may end up the most personally fulfilling of all jobs. I would guess that most HBS grads eventually end up blazing towards this eventually (perhaps after 5 or 10 years). Based on school stats, about 50% of HBS grads start their own business or join a start-up within 10 years. However, it's very difficult for many to do so right after school. Some don't believe they have the experience, the confidence, or simply can't afford the risk given all the loans (and expectations) that accumulate.

So that is my perspective on recruiting as I enter it. I will certainly keep an open mind as I go through recruiting season, and perhaps I will have a new perspective when I come out the other end. There are of course many other job functions out there, but broadly speaking, the above 4 are largely inclusive.

Personally, I'm always about giving myself options. That's why I went to the best school I got into instead of Business Honors programs. I'd rather get an MBA than an MS in Finance.

 

[bhzmafia14]

I'm very sure that Finance is the field I want to be in, but like you said I don't want to be limited. I know I'm capable of doing things within management, economics and marketing as well which is why the MBA looks promising. 

If it matters, the 3 summers combined along with the 6 months I plan on working would equal up 15 months. I'm sure that's still not enough time, but how do you feel about getting both degrees? As in getting the MS in Finance right after school, work a few years and then go after the MBA when I'm 26-27? That may be a realistic outlook, but would it really matter to have both the MBA/Finance degree when I could just get the MBA?

 

[bhzmafia14]

I'm very sure that Finance is the field I want to be in, but like you said I don't want to be limited. I know I'm capable of doing things within management, economics and marketing as well which is why the MBA looks promising. 

If it matters, the 3 summers combined along with the 6 months I plan on working would equal up 15 months. I'm sure that's still not enough time, but how do you feel about getting both degrees? As in getting the MS in Finance right after school, work a few years and then go after the MBA when I'm 26-27? That may be a realistic outlook, but would it really matter to have both the MBA/Finance degree when I could just get the MBA?

 

[jordanhendrix]

Well e best jobs go to kids from the best schools, can you into a top MSF program? It may be a good idea if so.
Having said that, your internships dont generally count as full time work in the eyes of a b school. IMO an MBA will get you e finance job you want too but only if you have a finance background before you get in.
Check out gmatclub.com

 

[jordanhendrix]

Well e best jobs go to kids from the best schools, can you into a top MSF program? It may be a good idea if so.
Having said that, your internships dont generally count as full time work in the eyes of a b school. IMO an MBA will get you e finance job you want too but only if you have a finance background before you get in.
Check out gmatclub.com

 

[bhzmafia14]

Originally Posted by jordanhendrix

Well e best jobs go to kids from the best schools, can you into a top MSF program? It may be a good idea if so.
Having said that, your internships dont generally count as full time work in the eyes of a b school. IMO an MBA will get you e finance job you want too but only if you have a finance background before you get in.
Check out gmatclub.com

I attend Middle Tennessee State. Not what you call a top tier school, but we were ranked #57out of 600 in Public American Universities back in 2009. 
Right now, I'm at a 3.1 GPA trying to improve to a 3.2 if I can pull out straight A's or very close to it this semester. I'm in about six organizations and have or have had leadership positions in three of them (CFO, VP, Treasurer). IMO, I have a pretty solid resume overall but not sure on getting into a top MSF program even though I will apply at a few.

 

[bhzmafia14]

Originally Posted by jordanhendrix

Well e best jobs go to kids from the best schools, can you into a top MSF program? It may be a good idea if so.
Having said that, your internships dont generally count as full time work in the eyes of a b school. IMO an MBA will get you e finance job you want too but only if you have a finance background before you get in.
Check out gmatclub.com

I attend Middle Tennessee State. Not what you call a top tier school, but we were ranked #57out of 600 in Public American Universities back in 2009. 
Right now, I'm at a 3.1 GPA trying to improve to a 3.2 if I can pull out straight A's or very close to it this semester. I'm in about six organizations and have or have had leadership positions in three of them (CFO, VP, Treasurer). IMO, I have a pretty solid resume overall but not sure on getting into a top MSF program even though I will apply at a few.

 

[peter]

hello! i'm going to finish my undergrad for finance in spring 2011.
i'd find this to be interesting, finance is a little iffy right now
im always told to switch to accounting
sighhh economy is rough out there =/

 

[peter]

hello! i'm going to finish my undergrad for finance in spring 2011.
i'd find this to be interesting, finance is a little iffy right now
im always told to switch to accounting
sighhh economy is rough out there =/

 

[poeticjays]

Originally Posted by bhzmafia14

Originally Posted by jordanhendrix

Well e best jobs go to kids from the best schools, can you into a top MSF program? It may be a good idea if so.

Having said that, your internships dont generally count as full time work in the eyes of a b school. IMO an MBA will get you e finance job you want too but only if you have a finance background before you get in.

Check out gmatclub.com

I attend Middle Tennessee State. Not what you call a top tier school, but we were ranked #57out of 600 in Public American Universities back in 2009. 
Right now, I'm at a 3.1 GPA trying to improve to a 3.2 if I can pull out straight A's or very close to it this semester. I'm in about six organizations and have or have had leadership positions in three of them (CFO, VP, Treasurer). IMO, I have a pretty solid resume overall but not sure on getting into a top MSF program even though I will apply at a few.

Honestly, you would not be competitive for even a top 50 MBA program right now, unless you have some crazy extracurricular/leadership experience. A few internships does not count as real 'work experience' when applying to B-school.

If you want to do finance right now, your best bet would be to kill the GMAT, (i'm talkin about 750 range), and demonstrate you bring a lot more to the table than your grades because a 3.1 is not cutting it in finance, and try to get into a decent Masters in Finance program. If you can get into a reputable school, then make sure you get really good grades as that will help you get your foot in the door when it comes to interviews. Entry-level finance jobs weigh academic achievement heavily as a lot of the work is very quantitative and they want to make sure you have the intellectual horsepower to do the job.

 

[poeticjays]

Originally Posted by bhzmafia14

Originally Posted by jordanhendrix

Well e best jobs go to kids from the best schools, can you into a top MSF program? It may be a good idea if so.

Having said that, your internships dont generally count as full time work in the eyes of a b school. IMO an MBA will get you e finance job you want too but only if you have a finance background before you get in.

Check out gmatclub.com

I attend Middle Tennessee State. Not what you call a top tier school, but we were ranked #57out of 600 in Public American Universities back in 2009. 
Right now, I'm at a 3.1 GPA trying to improve to a 3.2 if I can pull out straight A's or very close to it this semester. I'm in about six organizations and have or have had leadership positions in three of them (CFO, VP, Treasurer). IMO, I have a pretty solid resume overall but not sure on getting into a top MSF program even though I will apply at a few.

Honestly, you would not be competitive for even a top 50 MBA program right now, unless you have some crazy extracurricular/leadership experience. A few internships does not count as real 'work experience' when applying to B-school.

If you want to do finance right now, your best bet would be to kill the GMAT, (i'm talkin about 750 range), and demonstrate you bring a lot more to the table than your grades because a 3.1 is not cutting it in finance, and try to get into a decent Masters in Finance program. If you can get into a reputable school, then make sure you get really good grades as that will help you get your foot in the door when it comes to interviews. Entry-level finance jobs weigh academic achievement heavily as a lot of the work is very quantitative and they want to make sure you have the intellectual horsepower to do the job.

 

[bijald0331]

3.1 at Middle Tenn State? To be honest, worry about getting into these programs before picking and choosing what is better for you. You will need to kill the GRE/GMAT to get into a good program.

 

[bijald0331]

3.1 at Middle Tenn State? To be honest, worry about getting into these programs before picking and choosing what is better for you. You will need to kill the GRE/GMAT to get into a good program.

 

[hlfblkhlfnike]

Originally Posted by bhzmafia14

Originally Posted by jordanhendrix

Well e best jobs go to kids from the best schools, can you into a top MSF program? It may be a good idea if so.
Having said that, your internships dont generally count as full time work in the eyes of a b school. IMO an MBA will get you e finance job you want too but only if you have a finance background before you get in.
Check out gmatclub.com

I attend Middle Tennessee State. Not what you call a top tier school, but we were ranked #57out of 600 in Public American Universities back in 2009. 
Right now, I'm at a 3.1 GPA trying to improve to a 3.2 if I can pull out straight A's or very close to it this semester. I'm in about six organizations and have or have had leadership positions in three of them (CFO, VP, Treasurer). IMO, I have a pretty solid resume overall but not sure on getting into a top MSF program even though I will apply at a few.

I'm looking to pursue my MBA in the fall of next year.  I'd recommend padding those stats as much as possible.  How many credits are you taking a semester?  If its the bare minimum, add another handful to boost that gpa.  18-21 credit hours a semester is do-able, even while working full-time.  Trust me.  It would also be to your advantage to gain a few more years of work experience.  Most of your competition is going to have at least 2 yrs under their belt.  The MBA is a degree that is geared towards "working professionals."  Every candidate is going to have strengths and weaknesses on their application.  At the moment you've got more weaknesses.

  

  

 

[hlfblkhlfnike]

Originally Posted by bhzmafia14

Originally Posted by jordanhendrix

Well e best jobs go to kids from the best schools, can you into a top MSF program? It may be a good idea if so.
Having said that, your internships dont generally count as full time work in the eyes of a b school. IMO an MBA will get you e finance job you want too but only if you have a finance background before you get in.
Check out gmatclub.com

I attend Middle Tennessee State. Not what you call a top tier school, but we were ranked #57out of 600 in Public American Universities back in 2009. 
Right now, I'm at a 3.1 GPA trying to improve to a 3.2 if I can pull out straight A's or very close to it this semester. I'm in about six organizations and have or have had leadership positions in three of them (CFO, VP, Treasurer). IMO, I have a pretty solid resume overall but not sure on getting into a top MSF program even though I will apply at a few.

I'm looking to pursue my MBA in the fall of next year.  I'd recommend padding those stats as much as possible.  How many credits are you taking a semester?  If its the bare minimum, add another handful to boost that gpa.  18-21 credit hours a semester is do-able, even while working full-time.  Trust me.  It would also be to your advantage to gain a few more years of work experience.  Most of your competition is going to have at least 2 yrs under their belt.  The MBA is a degree that is geared towards "working professionals."  Every candidate is going to have strengths and weaknesses on their application.  At the moment you've got more weaknesses.

  

  

 

[wawaweewa]

It's tuuurrrrrible getting an MBA from a non top 20 school. Especially now.

 

[wawaweewa]

It's tuuurrrrrible getting an MBA from a non top 20 school. Especially now.

 

[shoehead117]

Originally Posted by bijald0331

3.1 at Middle Tenn State? To be honest, worry about getting into these programs before picking and choosing what is better for you. You will need to kill the GRE/GMAT to get into a good program.

Agreed. If you want to work in finance you better bring that GPA up to at least a 3.5. Especially since you don't exactly attend a highly regarded school (No offense).

 

[shoehead117]

Originally Posted by bijald0331

3.1 at Middle Tenn State? To be honest, worry about getting into these programs before picking and choosing what is better for you. You will need to kill the GRE/GMAT to get into a good program.

Agreed. If you want to work in finance you better bring that GPA up to at least a 3.5. Especially since you don't exactly attend a highly regarded school (No offense).

 

[bijald0331]

Basically, show epic progress this next year and absolutely destroy the GMAT. A 99 percentile score (>750). Lock up a job and work as hard as you can to get a promotion/show you are capable in a leadership/decision-making position. This is what great schools look for if you don't have the top grades. Some people do get in.