(‘The Right Choice’ is a series by The Indian Express that addresses common questions, misconceptions, and doubts surrounding undergraduate admissions. You can read the stories here.)
— Muddassar Nazar
A career in finance is an attractive proposition for many since it offers steady growth up the corporate ladder and a great scope of learning. It is known for its remunerative benefits, enabling aspirants to explore a range of career paths. After pursuing the financial domain, most graduates occupy critical company roles and become leaders in strategic initiatives, driving major projects and influencing organisational progress.
The United States Bureau of Labour Statistics underlines that the overall employment in business and financial occupations is likely to surge faster than the average for all occupations from 2023 to 2033.
On average, nearly 9,63,500 openings are projected each year in these occupations owing to employment growth. In line with this trend, the Financial Planning Standards Board of India observed that the financial services sector consisted of about 18 lakh jobs till last year. These statistics portray the increasing demand for professionals in finance which is likely to replicate an uptick across the globe, highlighting a bright future for aspirants.
Despite it all, picking the right course in finance may become an overwhelming task for most individuals. Commonly, many of them find themselves in a dilemma while opting for financial literacy or behavioural finance. Let’s break this down.
The curriculum
Financial literacy enables aspirants to learn the nuances of monetary decision-making. It involves understanding financial instruments, managing finances efficiently via budgeting and expense tracking as well as planning for retirement. Further, it equips one with assessing risks, understanding taxation principles, debt management, savings and investment and credit scores. Applicants aiming for courses in financial literacy occupy job roles such as Financial Planners, Credit Counsellors, Accountants, and Personal Finance Consultants, just to mention a few.
Behavioural finance integrates psychology and finance, enabling aspirants to learn how psychological biases impact financial decision-making. It stems from principles of behavioural economics which examine cognitive biases such as overconfidence and loss aversion in leading a person towards irrational choices. Besides, behavioural finance studies market anomalies and investor behaviour along with strategies to reduce irrational investing behaviours. Those inclined towards this domain become Behavioural Finance Analysts, Investment Analysts, Risk Management Specialists and Portfolio Managers in the future.
Investment of Time and Money
Nowadays, courses in financial literacy are easily available online and offline. Aspirants can opt for the duration of the course basis their understanding and experience level. Various prestigious universities offer certifications as well after the successful completion of workshops or classes in financial literacy. Thus, the costs can vary from person to person.
Conversely, behavioural finance is a specialised field which requires one to dive deep into theory and psychology. As it is a niche, it may appear more cost-intensive than financial literacy. To ace it fully, aspirants may be required to spend more time to gain practical exposure beyond the immediate scope of study.
Job opportunities in the market
Financial literacy provides a pool of job opportunities in the market which can depend upon the experience level and location of an aspirant. The estimated total pay for a fresher Financial Advisor in India is Rs 5 lakhs per year, with an average salary of Rs 4 lakhs per year, notes Glassdoor. Currently, talented and skilled professionals are needed across various sectors, from personal to corporate finance.
When it comes to behavioural finance, salaries depend upon the role and requirements. As per Ambition Box, an Investment Analyst’s salary in India with less than one year of experience to seven years ranges between Rs 2.5 lakh and Rs 31.4 lakh.
In times to come, the field of work may become extremely competitive since a growing number of organisations are appreciating the importance of psychology in driving financial outcomes.
To summarise, while choosing between financial literacy and behavioural finance, individuals must weigh their interests, skills and long-term goals. Ultimately, both these fields offer wide-ranging career prospects and equip candidates with valuable skills to lead the financial world.
(The author is the CEO of Birla Brainiacs)
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