If you believe that only those in the banking sector need to grasp financial concepts, it might be time to rethink that perspective. Finance plays a significant role in our daily lives, and understanding it can be more impactful than you think. Contrary to what you might assume, delving into finance isn’t as complex as it may seem.

Finance, as defined by Investopedia, encompasses activities related to banking, debt, credit, capital markets, money, and investments. In practical terms, it refers to the monetary decisions made by consumers, businesses, and governments on a regular basis. Although similar to accounting, finance differs in that it focuses more on the implications of employing various money management strategies, rather than solely collecting and analyzing financial information.

While accountants analyze financial data to generate reports, finance experts synthesize this information to provide actionable recommendations. Finance aids in making informed decisions about money, while accounting helps keep track of it. Everyday financial scenarios, such as budgeting for groceries, determining how much of your paycheck to save or invest, and deciding whether to pay your credit card balance in full each month, involve the use of finance.

There is a glaring need for better financial education in the United States. Studies reveal that a significant portion of the American population lacks financial literacy. Surveys conducted in 2023 found that American adults correctly answered less than half of 28 basic money questions. Those with low financial literacy are more likely to struggle financially, have debt issues, and lack emergency savings.

Given the pressing need for financial education, studying finance becomes crucial. Business, which includes finance, was the most popular undergraduate degree conferred in the U.S. in 2020–21. Studying finance not only opens doors to careers in the financial services sector but also equips individuals with skills to make sound personal financial decisions. Pursuing graduate coursework in finance further enhances these skills and improves job prospects, as predicted by the Bureau of Labor Statistics (BLS).

The BLS projects faster-than-average employment growth in business and financial occupations from 2022 to 2032. Roles such as financial manager, budget analyst, personal financial advisor, and financial risk specialist offer promising job opportunities. With the growing demand in various settings, a finance degree not only promises an exciting career but also enhances everyday financial decision-making skills, making it a wise choice for those venturing into the business world.