Hello everyone welcome to decode economics where we decipher the financial world and delve into our personal finances so today I'm gonna be talking about what you should study at University out of accounting finance and economics I'm gonna begin with going over what you'd be studying in each and every degree what type of job you'd be .
Doing after you graduate and how much money you might earn and towards the end I'm gonna be giving you some helpful tips on how you can decide which one is right for you so make sure to stick around till the end so choosing the right major is a really important decision I mean it could be the difference between getting a degree .
That's worthwhile getting a degree that would have a really good return on investment or just majoring in something worthless or something that's not right for you that would just end up being a huge burden a huge cause of debt if you understand what the major that you are pursuing is what you'd be doing after you graduate and if it's right for you .
You could just be miles ahead of everyone else so let's start with economics economics is different from both finance and accounting in that it is a science in itself so economics is defined as the social science that studies how individuals and society use scarce resources to satisfy unlimited needs so it can always goes into how .
People behave and how people as rational agents act in an economy to try to satisfy their desires as you can imagine economics is a very broad subject so you'd be studying a bit of philosophy a bit of history mathematics in addition to the actual economics or pure economics courses that you'll be taking you'd be taking courses like history of .
Economic thought decision-making finance some courses in finance and accounting microeconomics which looks into the micro level of the economy and macroeconomics which looks into inflation unemployment and the major aggregate variables in the economy and after graduation someone with a degree in economics would .
Typically work either in the public sector or in the private sector and the public sector they'd be working in researched or in taxation or anything that requires analysis and in the private sector they could be working in banking financial institutions they could be data analysts there are a lot of job opportunities for people who have .
A degree in economics and according to payscale.com someone with a degree in economics would be expected to earn an average salary of 72 thousand dollars a year that's not to say that if you have the degree in economics from any university wherever you are you'd be making 72 thousand dollars a year because that depends on where you're .
Studying where you are what experience you have but it's the way where you could use that as a measurement to compare this degree across other degrees finance is more specific finance deals with the management of money it's how firms and sometimes individuals use their money and invest it in order to make a good return while minimizing .
Risk if you're studying finance you're gonna take courses like financial modeling you're gonna take courses about the stock market about financial instruments derivatives bonds you'll take courses about portfolio management and how the financial sector works after graduating with a degree in finance you could expect a salary of 72 .
Thousand dollars according to payscale.com and you'd be doing work like financial modeling working as a credit analyst working anything anything basically in the financial sector or in banking would be a good job for a finance degree and finally accounting accounting is just a system that people use to measure record and analyze .
Financial data so you could look at accounting as the language that the financial world uses whenever you go to a shop and buy something this is a transaction whenever the shop has to buy resources that's a transaction profit loss assets all those things are translated into numbers using accounting and as you could imagine account .
Is a very important skill to have so a person with a degree in accounting is expected to earn about $70,000 according to payscale.com just a side note even though the three are different they often overlap and a lot of subjects so a person who takes economics will take a course or two in accounting someone who's doing finance will take a course .
In economics and someone who's doing accounting will typically learn a bit about the financial sector now to the final part how to decide which one is right for you so a log goes into this it depends on what your personality is like it depends on what you want in the future on the career path you want but typically if you're someone who's .
Research oriented if you like academia if you're like me and you just like to read then economics is something that would be right for you and a really important thing in economics is that because it's so broad there are a lot of different jobs that you could be doing in economics so you don't have to stay in something very .
Similar for a long time you could just start out in the banking sector then take a job somewhere in government then you could do consultancy then you could just continue a postgraduate degree and go into research it's very broad now to accounting so someone who would be a good accountant is someone who is comfortable with numbers obviously and .
Who's just comfortable crunching numbers for long periods of time he has to be able to scrutinize and to pay really good attention to details and one of the advantages of being an accountant is that the job market and the labor market for accounting is more stable than that of economics and Finance so it typically doesn't go up and down with the market .
As much as the other majors finally if you're someone who enjoys investment who is really passionate about money about making money obviously but also about how money works and how the financial sector works and doesn't mind a fast-paced life then going into finance would be the right decision anyway guys I hope you enjoyed this .
Video if you have any questions about the three majors then make sure to put it in the comments below and I will be seeing you in another you