Who Earns More CFA or MBA? Which is Better for a Career in Finance

Posted on

If you want to pursue your career in finance, you may try to find out what position to earn more. In fact, there are a number of positions of finance you can take, such as CFA, MBA, etc. You may get confused which position between CFA or MBA that earns more.

If you have a plan to take a finance program and are confused about which one you should choose between CFA and MBA, you can try to look for the information which will give you a higher salary. No worries! You can dive into our post to find out the information about it. Here you go!

Comparison of CFA VS MBA Salary

It’s slightly hard to make a salary comparison, since the salary of each professional will depend on the job, industry, years of experience, size of company and job location. To determine whether a CFA or MBA is worth the money and time, you may need to consider how much you stand to get.

The U.S. News Data reported the median salary for financial advisors in 2019 was almost $88,000. The highest paid quartile gained more than $150,000. According to the CFA Institute, by comparison, the average reported total compensation for CFA charterholders in 2019 was $316,000. On average, the base salary, not including bonuses, was $178,000.

Since the university factors into the overall compensation, MBA salaries are harder to determine. The U.S. News data displays the overall compensation for MBA graduates from the business school with the highest reported salary and bonuses is approximately $17,000 on average, compared to roughly $53,000 for the business schools with lowest ranking bonus and salary.

According to Payscale, the base salary of an MBA graduate on average is $91,000, while the CFA charterholder earns around $97,000 on average. Many data sources reported that the MBA’s salary is higher than CFA’s and of course MBA earns more than CFA charterholder.

Comparison of CFA Vs MBA Study Cost

That said, CFA and MBA are frequently billed as rival training programs, but in reality both are not easily comparable. It is known that CFA is a deep specialty program that focuses on investment analysis, while MBA focuses on business management and leadership.

According to Steven Young, a professor of accounting at Lancaster University Management School in the UK, the MBA and CFA qualifications actually tend to attract different types of individuals who are pursuing different career paths.

The fees of total exam and registration for all three levels that do not exceed $7,000. Even part-time MBAs from a good business school are orders of magnitude more expensive. In fact, the MBA really needs a far bigger investment of money than the CFA credential.

According to AACSB, elite-full-time, residential MBAs cost as much as $200,000, but the average MBA tuition fee is around $35,000. Even though the CFA is clearly cheaper, the return on investment actually varies depending on the business school that you attend and the job you are looking for and is likely to be extremely individualized.

Stephen said that CFA charterholders can achieve the top of their investment companies, but the MBA speeds up that progress. Although MBAs may earn less initially, without fat bonuses, and of course, their prospects to move into higher leadership positions with a bigger salary are good.

Depending on how early you register, plus a one-time CFA Institute enrolment fee of $450, the only required cost to get your CFA is the exam fees, ranging from $700 to $1,000. The MBA’s cost will vary depending on the type of school that you attend and can range from $15,000 to over $75,000.

A full-time executive MBA’s cost at many of the top-ranked programs in the 2021 U.S. News Best Business School rankings is between $100,000 to $200,000. George said that a lot of companies offer reimbursement or assistance in obtaining credentials and advanced degrees. He also said that those are among the most underutilized benefits in corporate America.

Comparison of CFA Vs MBA Time Management

It is known that both the CFA and MBA are multi year commitments. The CFA requires a minimum of 3 years to complete, since the three exams are only offered once per year and should be taken sequentially. You definitely can expect to spend over 300 hours preparing for each exam.

MBA needs two-years of full-time study to complete. In fact, several accelerated programs can be completed faster. Furthermore, part-time programs are intended for working professionals who want to gain their MBA while keeping their day job. The time commitment for a part-time MBA will vary, but it’s commonly three years.

Leaman said that the biggest difference is that with an MBA, you may be involved in a class-like environment that is surrounded by peers throughout the process. Theoretically, you can complete the CFA Program at your home.

Comparison of CFA Vs MBA Career

The Chartered Financial Analyst (CFA) is really good for a career in investment banking. This position functions as a precious credential for people who are interested in a career in investment banking. Its rigorous curriculum implicates corporate finance, financial modelling skills, ethics and financial analysis. Along with investment banking, CFA charterholders frequently pursue careers in consulting, commercial banking and asset management.

The Master of Business Administration (MBA) is good for a career in finance. If we compare to CFA, MBA provides a broader overview of business principles. MBAs will teach students valuable analytical and leadership skills which prepare them for chances across a number of sectors and careers in finance.

For example, MBA graduates can continue to pursue careers as consultants, financial analysts, chief financial officers or financial managers.

CFA Vs MBA’s Benefits

According to the CFA Institute’s Compensation Study, the respondents who held both an MBA and CFA designation had the highest median compensation of everyone: $195,000. CFA is currently a requirement for a lot of asset management roles, but having CFA is no guarantee of a job in financial markets. The MBA charterholder tends to attract people who are already established in their careers who want to move into senior management.

Leave a Reply

Your email address will not be published.