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Every year, more than 100,000 students graduate with MBA degrees in America . Undoubtedly one of the most popular graduate degrees, an MBA provides degree holders with a flexible range of job opportunities. However, depending on the situation, it may be more beneficial to obtain an MSc in Finance or Economics rather than an MBA.

Ultimately, obtaining an MBA or a Master’s in Science can lead to the same career but through different approaches. Traditionally, an MBA course exposes you to a wide range of management techniques and encourages you to develop your own way of thinking about management (in accordance to the choice of your career).

On the other hand, an MSc in Finance or Economics provides you with a focused academic approach towards your respective field of study. However, it is to be noted that many students who obtain MSc’s in Finance or Economics end up developing careers in management; thus, getting a Master’s in Science should not be seen as a limiting option.  

If you want to become an economist or a financial analyst, pursuing a specialized master’s degree would be the logical choice. On the flip side, if you are looking to enter the field of management, then an MBA would be more appropriate. However, such decisions are usually not so clear-cut and many other factors are called into question.

For example, most Masters in Finance or Economics programs do not require any prior work experience at all. Thus, many younger students who want to pursue their studies but have little work experience opt to obtain MSc’s in order to strengthen their credentials before stepping into the work force.  

On the other hand, most MBA students have been out of school for about 4-5 years, and are generally back in school in order to accelerate their careers or to switch careers. For example, if an engineer wanted to swap his or her career for one in marketing, he/she would go back to school and get an MBA.

Another difference between obtaining an MSc and an MBA is the fact that MSc programs typically last for one year while US MBA programs generally take two years to complete. Additionally, employers will have different expectations for both degrees. Typically, recruiters who are looking for people with Master’s degrees in Finance or Economics are hoping to find someone who has real technical skills and is capable of performing intensive analysis. They’re usually not as concerned about their broad management skills or about their team project skills (not that they don’t have to be team players)—their main purpose is to become an analyst. Recruiters looking for those with an MBA are generally looking for those with leadership potential. They want team players who have broad management foundations and have experience in handling team projects.

On average, statistics have shown that MBA graduates have higher starting salaries than MSc graduates. However, this is mainly because it’s very unusual for someone to go from an undergraduate degree to go directly into an MBA. It’s more likely for someone to obtain an MSc right after they’ve gotten their undergraduate degree. Thus, MBA students generally have more work experience, which explains their higher salaries.     

In the end, both degrees offer incredible versatility and oftentimes can lead to similar career paths. Depending on the nature of your desired career, one degree may be more useful than the other, but don’t rule out the possibility of getting both! Many people opt to get their MSc early on and decide to return for their MBA after gaining work experience. There’s always the chance to go back to school and expand your credentials!