Financial Economics: Exploring Careers, Skills, and Opportunities
Interested in How Money Works?
Welcome to the world of financial economics.
Can you imagine how valuable your job would be if you could predict inflation—not to mention related wage and market trends—in this day and age? Are you good with numbers and data? Are you interested in the modeling and quantitative analysis of finance and monetary policy, whether it be for a corporation, government, or the world economy as a whole?
For those who can accurately analyze—or even better, predict—economic, purchasing, or monetary trends, the world of financial economics can be their oyster. It is both lucrative and perennially valuable, and offers broad professional flexibility, whether one is interested in research, policy making, or risk management, particularly in the financial and public sectors.
The Skill Set
Financial economists typically master the following skills:
- Computer and mathematical skills, including calculus and linear algebra
- Ability to conduct in-depth research, including creating and conducting surveys and collecting data
- Data analysis using sophisticated mathematical models, statistical tools, and other software. Economists often create such models and analytical tools themselves
- Critical-thinking skills that are used to interpret results to observe patterns and forecast complex market/financial trends
- Communication/presentation skills, both written and oral, in order to relay findings to businesses, governments, and individual clients. Research is often presented in tables, graphs, and articles, and audiences may vary from colleagues with similar backgrounds to those who do not have a background in economics
Career Options
Graduates with even a bachelor’s degree in financial economics have a relatively high mean starting salary of $61,000 (base) and report a job satisfaction rating of 4.5/5.0 according to payscale.com. In the long-term, listed below are a few career options that a background in financial economics can prepare you for, as well as their 2022 median annual pay, according to the United States Bureau of Labor Statistics. Note that all the listed professions are predicted to have job growth rates higher than the national average for all occupations over the next decade.
- Economist—$113,940—Conduct research, prepare reports, and evaluate issues related to monetary and fiscal policy
- Actuary—$113,990—Use mathematics, statistics, and financial theory to analyze the economic costs of risk and uncertainty
- Financial Analyst—$96,220—Guide businesses and individuals in decisions about expending money to attain profit
- Budget Analyst—$82,260—Help public and private organizations plan their finances
- Data Scientist—$103,500—Use analytical tools and techniques to extract meaningful insights from data
- Operations Research Analyst—$85,720—Use mathematics and logic to help solve complex issues relating to an organization’s operational structures and processes
- Market Research Analyst—$68,230—Study consumer preferences, business conditions, and other factors to assess potential sales of a product or service
The Importance of a Degree
Given the complex and specialized nature of the field, a degree in financial economics is a necessary prerequisite. Those getting into theory or policy making must master the above skills to an even higher degree. According to the Bureau of Labor Statistics, “economists typically need at least a master’s degree to enter the occupation. However, some economists—primarily in government—qualify for positions with a bachelor’s degree.”1
A School at the Intersection of Finance and Technology
Illinois Tech’s Stuart School of Business, located near Chicago’s central business district, is situated in an epicenter of global finance, including the derivatives marketplace known as the Chicago Mercantile Exchange (which has merged with the Chicago Board of Trade), numerous financial firms and institutions, and hundreds of corporate enterprises that call the Chicago metropolitan area their home.
Stuart is also the only business school in Chicago that’s part of a tech-focused university, thus bridging any gap between business and technology while providing foundational knowledge in finance and economics and an in-depth mastery of the quantitative and analytical skills that the profession demands. It is also a STEM-designated program.
Stuart offers both bachelor’s and master’s degrees in financial economics. Here are a couple of courses in financial economics that are unique to Stuart:
- The two-course Econometrics and Statistics sequence teaches students powerful techniques to generate valuable insights from large databases. These project-oriented courses explore how to use statistical software and apply sophisticated econometric techniques to analyze and predict economic trends, understand consumer behavior, mitigate risk, and make informed business choices.
- The Visual Analytics—Data Analytics and Visualization course provides distinctive and cutting-edge instruction in dashboard creation, interactive visualization techniques, and the art of crafting data-driven narratives using design principles and leading tools such as Tableau.
- The Microeconomics and Game Theory course trains students to develop an economics mindset as a powerful pathway to understanding and analyzing complex problems in business and finance. It covers a wide range of factors—such as incentives, analysis of costs and benefits, competition, and market structures—that impact decision making by managers and leaders in businesses and organizations across the economy.
One School, Two Programs
Stuart’s Master of Science in Financial Economics program focuses on the practical application of economics and data analytics through the lens of finance and the markets. Students develop sophisticated quantitative, analytical, and modeling skills that are in demand for research, policy making, and risk management jobs, especially in the financial and public sectors.
Students develop the comprehensive scientific, mathematical, and applied skill sets for testing and applying financial and economic models, as well as the tools and critical thinking skills to solve problems in practice and regulation involving asset pricing, risk management, financial engineering, corporate finance, or portfolio management.
Additionally, Stuart’s Bachelor of Science in Financial Economics program teaches students the comprehensive scientific, mathematical, and applied skill sets required for testing and applying economic models within business settings. Our program also equips you with critical thinking skills for evaluating and improving methods that investigate the economic components that influence individual, system, and social level variables.
Ready for the World of Financial Economics?
If you’re interested in analyzing one of the most complex and important questions at the heart of any business, or perhaps even the economy of a nation or the world as a whole, then the field of economic finance is likely right for you. Statistics show the field is not only financially rewarding, but also carries a high level of job satisfaction and a strong projected job outlook over the next decade (and it’s highly likely a financial economist came up with those predictions).
If you’re interested in examining Illinois Tech’s Master of Science program in Financial Economics —including scholarship opportunities, part-time and evening course options, and hands-on work experiences— contact Stuart’s Director of Recruitment and Enrollment Strategy Brian Albertsen.
- https://www.bls.gov/ooh/life-physical-and-social-science/economists.htm#tab-4