Finance is a broad term covering many things about the study, generation, and distribution of funds. This can include the borrowing of funds by individuals or corporations, the repaying of loans by consumers, or the creating and managing of funds. All these require expertise and extensive knowledge of financial affairs. In fact, many of the jobs that we perform today require advanced degrees in finance. There are several careers related to finance and many different concentrations available.
One of the major branches of finance is banking. Banking is the practice of borrowing money and using it to create new loans. Some of the banks include commercial banks, savings and loans, credit unions, depositaries, and mortgage banking.
Another branch of finance is consulting. In this field, an individual is employed to develop financial systems, analyze problems with money management and recommend solutions. A consultant could be hired to help a bank, developing financial systems and making recommendations to improve the institution’s cash flow. A consultant could also be hired to evaluate a lending company’s risk management procedures and suggest changes that can decrease the company’s exposure to losses. The consultant could work in various areas such as insurance, securities, investment banking, or consumer finance.
Financial analysts focus on studying the financial systems of large corporations or governments. These systems may include taxes, national and local government finances, or even the financing of education. Financial analysts may also work in corporate finance, insurance, banking, or other industries. The average salary for individuals who hold a master’s degree in accounting or finance is over six hundred dollars.
Mortgage finance involves the lending of money to people to purchase homes. There are three main types of mortgage financing: government-backed loans, private lending, and Wall Street lending. Government-backed loans are guaranteed by the United States government. Private lending is generally less regulated than government-backed loans and is usually done through banks or other registered financial institutions. In the United States, mortgage lending is typically done through the Federal Housing Administration.
Finance professionals may also serve as brokers or financial advisors. These professionals work with their clients to plan for future finances, making suggestions about how to handle current cash flow, short-term money management, long-term planning, and investment strategies. Brokers work with their clients to find the best lender for their financial needs, working with the customer to find the best interest rate and loan terms. They also provide advice about debt management and financial systems. Finance brokers receive training from a certified accountant on money management and often handle the bank account or credit department for clients.
A degree in accounting prepares students to enter the world of finance. Students who earn an accounting degree will learn about financial transactions, developing budgets, analyzing information, and completing financial reports. Graduates may go on to become financial managers, accountants, or public accounting professionals. Students who want to enter the banking industry can also obtain a bachelor’s degree in accounting to prepare them for entry into the industry.
Finance graduates can choose to go on to earn a Master of Business Administration, which will be an advanced degree and provide greater job security than a four-year public finance degree. Those with a master’s degree in business administration can enter careers in corporate finance, venture capital, financial advising, and investment banking. Finance graduates can also go on to become economists, policy makers, economists who research financial activities, or government fiscal officers. The job outlook for corporate finance, personal finance, public finance, and economics graduates is strong.
Finance courses help students understand investing and savings, lending, risk, and macroeconomics. Students in the accounting program may choose to specialize in one or more of these areas of finance to expand their professional portfolio. Finance degrees also prepare students to work in government, nonprofit organizations, and private sectors.
The United States is a major global producer of almost all of the global commodities that are traded on the world market. Because of the United States’ prominence in global finance, many international companies have headquarters in the United States. Some of the financial services sector jobs that you can find include: financial planners, insurance sales representatives, financial analysts, bankers, loan officers, commodity brokers, and financial product sales representatives. If you are interested in working in the financial services sector of the global economy, then you should consider a career in financial services.
Finance is a dynamic and ever-changing field. It has no boundaries and its principles never stop being reinvented. While working in the corporate finance sector, you will need to be very versatile because you will be dealing with financing as well as dealing with derivative instruments and currencies. You will also deal with negotiations on behalf of your clients. As a finance professional, you should know that the world of finance includes three main parts: banking, financial markets, and investment. Finance graduates who want to pursue careers as bankers should complete their undergraduate studies with an introduction to finance.