Hey! Are you also the one who is interested in knowing about the debt, stock market, banking, saving, investment, consumption, trade, and commerce? After 10th and 12th, most students are puzzled about which subject they should select for their career. They eagerly want to know the aspect of Finance vs economy.
Don’t Worry! I’m here to assist you. Take some snacks and beverages and relax. Just read this blog, and you will finally decide which subject you should choose. This blog will clear your path to select Finance vs economy.
In this blog, you will know the difference between Finance and economy, various job opportunities available, and the best courses available for you in both fields. Before knowing Finance vs Economic, why shouldn’t we look at the meaning of both terms? Let’s start the blog without delay anymore!
Just keep in mind! When somebody asks you: what’s the meaning of finance? Just say- finance is related to money or monetary aspects. As finance deals with the money related elements such as:
- Assets & Liabilities
- Financial Institutions: Banks, Mutual funds, etc.
Hey! did you know there are three Types Of Finance:
- Public Finance
- Corporate Finance
- and Personal Finance.
Public finance is related to government finance. Public finance manages:
- Revenue of a country
Note: Here, revenue is related to the profits or earnings of a particular country.
- Expenditures of a country
Note: It includes the acquisition of goods and services that generally means public consumption and investment.
- Raising Debt from various government and quasi-government organisations.
Note: Debt is the money owed from various government organisations.
Another branch of finance is corporate finance, which focuses on making various strategies to increase shareholder value by doing long-term and short-term planning. Corporate finance mainly concentrates on:
- How the organisations can acquire or raise funds from multiple sources:
Note: Here sources of funds are:
- Shares(Equity, Preference),
- Retaining earnings
- Hire Purchase Finance
Accounting is the procedure of keeping the financial transactions of a firm.
Note: There are various important classes of accounting. Such as:
- Financial accounting.
- Managerial accounting.
- Cost accounting.
- Tax accounting.
- Accounting information systems.
- Forensic accounting.
- Public accounting.
- Investment Decisions
There are three sorts of investment decisions taken by a company. They are:
- Application of Finds
- Procurement of Funds
- and Distribution of funds.
3. Personal Finance-
Personal finance is a thing that describes- How an individual can borrow funds. Here it has five categories that you should know:
- and Protection
Now it’s my turn to explain the concept of the Economy. After that, we will see the finance vs Economy.
Economy or economics is the concept of production and consumption, which help define how scarce resources are distributed.
It helps us know the gross domestic product or (GDP), crises, wars of a country or a nation.
- Recent news is flashing about the Ukraine and Russia crisis.
- The second most familiar news of the Great Recession or Bubble Crisis in 2008 in the U.S is the Economy.
Do you know there are three types of Economy? Let’s see them:
- Pure Market Economy.
- Pure Command Economy.
- Traditional Economy.
- Mixed Economy.
Pure Market Economy-
In this economy, buyers and sellers use the market to exchange resources, goods and services. Buyers are keen to pay low prices for goods and services. And sellers only desire to take high prices for their goods and services.
Pure Command Economy-
No private sector exists in this type of economy. In this type of economy, the central Government holds and controls all the industries. The government administrators lay down the national economic policies that contain:
- How Government can generate economic growth,
- allocating the resources,
- and transferring the results.
In this type of economy, traditions and ideas are considered to better shape goods & services in the market. The economic system which follows this economy is rural and farm-based.
It is considered to be slightly more efficient than other pure free markets. The use of capital saves the property and permits a level of liberty. It enables governments to meddle in the activities of economics to acquire social objectives.
I hope you will understand the concepts of both Finance and Economy. Now, your wait is over. Let’s see Finance vs Economy:
Comparison Table: Finance vs Economy.
|Meaning||Finance is said to be the science of organising funds by considering the following:Time Risk Factorsand Cash at hand.||Economics is a study of social science that deals with controlling goods and services, production and consumption and other factors influencing them.|
|Types||There are mainly three kinds of Finance: Public FinanceCorporate Financeand Personal Finance.||Economy is divided into following parts:Pure Market Economy.Pure Command Economy.Traditional Economy.Mixed Economy.|
|Management||Finance is controlled by financial institutions (banking sector) and other institutions.||The private and Public sectors control the economy.|
|work-life harmony||It relies on which field you are working in. Investment banking is considered to be complicated. Equity research is considered to be average. Buy-side Analyst has good work-life harmony.|
You have to do the job at least 9-12 hours per day.
|In economics, it is not compulsory to complete the task as financial analysts do all time.|
|Networking Opportunities||The alumni network is healthy but not mixed as in consulting.||In economics, there are few domain alumni networks.|
Finance vs Economy Online Best Courses in 2022:
Here is some excellent graduation you should check before pursuing a degree.
Graduation Courses/ Degree in Finance:
- Bachelor of Applied Arts and Science
- Bachelor of Commerce
- Bachelors of Business Administration
- Bachelor of Science In Business Administration
- Bachelor of Science in Marketing
- Master Courses/ Degree:
- MSc in Innovation and entrepreneurship
- Master of Business Administration (M.B.A)
- Masters of Business Analytics
- Master in Business Management (M.B.M.)
- Global Master of Business Administration (Global M.B.A.)
- Master of Finance
- Master of Finance In Accountancy (M.S.A)
Economics Online Courses/Degree:
- Bachelor of Arts in Economics (B.A)
- Master’s Degree in Economics (M.A)
- Doctoral degree in Economics
Talents: Finance vs Economics:
To be a victorious economist or financial specialist, you should possess essential skills sets that you should grow and master in yourself:
- Collect, manage and analyse data
- Operate with statistics
- Analyse and assess investments
- Financial reporting
- Analytical capability
- Problem-solving talents
- Accounting skills (especially for financial professionals)
Careers: Finance vs Economy
- Accountant or Auditor
- The salary for accountants in the U.S.: $52,317
- The wage for auditors in the U.S.: $57,111
- Credit Analyst
- Salary in the U.S.: $51,500
- Brokers and Traders
- Earning for brokers in the U.S.: $58,031
- Earning for traders in the U.S.: $73,674
- Financial Analyst
- Median salary in the U.S.: $61,143
- Budget Analyst
- salary in the U.S.: $61,381
- Personal Financial Planners and Advisors
- salary for personal financial advisors in the U.S.: $63,528
- salary for certified financial planners in the U.S.: $67,252
- Risk Specialist
- Median salary in the U.S.: $64,787
- Quantitative Analyst
- Median salary in the U.S.: $84,266
- Securities Trader
- Median Pay: $130,299
- Financial Manager
- Median Pay: $129,890
- Median Pay: $129,826
- Median Pay: $122,960
- Median Pay: $121,077
- Data Scientist
- Median Pay: $116,185
- Management Consultant
- Median Pay: $103,022
- Mathematicians and Statisticians
- Median Pay: $93,808
- Budget Analyst
- Median Pay: $81,344
- Pricing Analyst
- Median Pay: $72,220
These are some finance vs economy careers. Go for the field which quickly will fit in your interest.
The Bottom Line-
Many people assume that finance and economy are identical. No, it is not true, Finance and economics are not the same concepts. Finance is concerned with trade and commerce, assets and liabilities, etc. In comparison, the economy evolves saving, investment, production, consumption, allocation of resources, etc.
Both fields are the suitable path for success in the career. Opt for the one which is of your interest. Don’t ever push yourself if you have no interest in them. I hope this blog will help you clear all your doubts regarding Finance vs economy. I tried to provide you with all the details regarding it. If you doubt these concepts, do not hesitate to ask.
Frequently Asked Questions
How is finance distinct from economics? Finance vs Economy
Finance is related with-
1. Financial Institutions
4. Hire Purchase
5. Mutual Funds
6. Stock Market
7. Foreign Currency, etc.
Economics deals with-
1. Markets (Domestic and international)
2. Consumer behaviour
3. Goods, services and resources, etc.
What are the best books for finance and economics?
Mainly this depends on your needs. Whether you require this for your higher studies or preparing for competitive exams. You should be clear with your query.
Here are some fascinating books that will help clear your basics and help you score well in exams.
An Introduction to Economics – A.W. Stonier and D.C. Hauge
Microeconomics: Hal A Varian
Macroeconomic Analysis – Edward Shepiro
The Hindu: Survey of Agriculture & Survey of Industry
An Introduction to Economics – A.W. Stonier and D.C. Hauge
Money Supply in India: Concepts, Compilation and Analysis (Sec.1-3 New Series only): Functions and Working (Read Relevant Chapters) – Reserve Bank of India
Economic Survey: Twelve Five Year Plan: New Industrial Policy – Government of India
Indian Economy – Ramesh Singh
The Economic Times and Economical and Political Weekly.
Best Overall: The Wealth Choice.
Best Introduction to Investing: Investing 101.
Best Introduction to Budgeting: Easy Money.
Best for Behavioural Economics: Dollars and Sense.
Best for Credit Repair: Perfect Credit.