CFA or MBA?

by Jessica Santina
jessica.santina@careertrainingdirectory.com
Career Training Directory Columnist

If you’re aspiring to a finance career, you may be considering the idea of pursuing a Chartered Financial Analyst (CFA) certification or an MBA degree. Statistics show that salaries for those holding an MBA or a CFA may be double that of people who only hold a bachelor’s.

If both a CFA and MBA degree will improve your chances of landing a great job with a great salary, which one should you pick?

What’s the Difference Between a CFA and an MBA?

First and foremost, an MBA is an actual degree. The CFA designation is a premiere, globally recognized certification specifically tailored to financial professionals. It involves successfully completing three “levels” of study and three exams. When you’re done, you’re ready for the high-powered world of finance - and ONLY finance. An MBA program, on the other hand, allows you to explore many different facets of the business world, from marketing to management, accounting to human resources. You can even tailor your MBA degree toward a specific field, like healthcare or information technology. If you’re not 100% sure whether finance is for you, an MBA program might be the best choice. Studies seem to show that both have roughly the same impact on your salary.

What’s Your Timeline?

Are you in a hurry? You might opt for the MBA. It takes the average person four years or more to complete the CFA successfully. Most people (76%) fail Level One the first time. Meanwhile, most MBA programs can be completed in two years or less, so you’re into a new career and earning a higher salary at least two years sooner.

How Do You Learn?

Do you prefer instructor-guided or self-guided coursework? The CFA isn’t a degree program; you’ll have no teacher asking you to complete your tests. It’s up to you to study the materials and take the exams. MBA programs are designed to guide you through that process.

Both the CFA and the MBA will improve your future. But it’s up to you to determine what that future looks like.

Sources

AnalystForum, “CFA Vs. MBA, which is best for you?” by Chad Sandstedt
eFinancial Careers, “Almost everything you’ve ever wanted to know about…the CFA charter” by Sarah Butcher

About the Author

Jessica Santina is a freelance writer with a background in media and promotions. She also teaches first-year writing courses at the University of Nevada, Reno.