CFP vs MBA – Which one to Choose? Making the right decision is what you want. If you are confused between CFP exam and MBA, then this article may help you solve some queries. Let’s check the above career titles along with how they can help you starting your career correctly and your career growth.
We will discuss the following in this article –
- CFP vs MBA Infographics
- What is a Certified Financial Planner (CFP)?
- What is Masters in Business Administration (MBA)?
- CFP vs MBA Exam Requirements
- Why pursue CFP?
- Why pursue MBA?
CFP vs MBA Infographics
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Lets understand the difference between these two streams with the help of this CFP vs MBA Infographics.
What is Certified Financial Planner (CFP)?
CFP helps you gain a seal of professional certification of a financial planner. This course is conducted by the Certified Planner Board of Standards or the CFP board. This board is based in the USA. 25 other organizations are authorized to conduct this certification course examination because of their affiliation with the CFP. CFP gives you an international recognition as a financial planner, affiliated organizations outside the USA as also known as the international owners of CFP.
The examination continuously for 2 days for 4 hours per day gives you the designation of CFP for which you need to pay a fee for registration, examination and a study material. And along with paying the fee the candidate needs to meet the courses education criteria by appearing for examinations, experiencing the financial planning and of course following its ethical standards by following is code of ethics. The specifications of this course or this certificate are different for both the USA and the UK candidates.
What is Masters in Business Administration (MBA)?
This master’s degree is not just a certification it’s a fully fledged degree with options of multiple specializations. Depending on the institution you clear your MBA from you will have your national and international recognition added to your career. This degree helps develop your talent and know how that is important in building your career in business and management. This course help you build your career in either a private, or a public sector or even in a government sector company. MBA focuses on important subjects of commerce such as economics, accounting, marketing and also operations, along with other optional subjects that the candidate would like to pursue. The optional subject can be used by the candidate for either his personal or professional requirements. The most exciting part of MBA is its internship program that the candidate can pursue in a company; this guides them to their right and required job opportunity after they successfully complete their course.
CFP and MBA exam requirements
Requirement for examination
- This examination does not need to be taken lightly as it is a two day exam for approximately 10 hrs with a number of multiple choice questions.
- Examination window opens in March, July and November in different locations.
- If you are not good at studding by yourself or you have difficulties understanding the subject please seek guidance as you need to pay examination fee.
Requirements for examination
- Only after clearing a GMAT or a GRE test the candidate can seek an admission in an MBA institute.
- MBA is a 2 year program followed by graduation.
- Internship is a part of this program
- In some institutes only candidates with professional experience can apply.
Why Pursue CFP?
If client management is on your mind and if you are also good at planning finances for your clients that is their money then you must complete CFP as it will add value to your career by boosting your talent and know how skills. You can work for individual clients by handling their financial goals by guiding them through legal restrictions, financial laws, investment and tax planning, insurances and benefits etc.
To understand the client better you need to understand his financial requirement, for that you need to understand the clients business better, to do so you need to prepare a background, do a little homework by interviewing the client, know about his finances his incoming and outgoing money, prepare a financial plan for your client, execute the plan accordingly and finally monitor the outcome of the plan. That’s the financial planners moral responsibility,
CFP gives you an option of working as a self employed, or in an organization as a financial advisor, these organizations can be an insurance company, a bank, a mutual fund company or an AMC.
Why Pursue MBA?
To add value to your existing career MBA is just perfect, in fact even if you are a fresher and have just passed out of an MBA institute you definitely will start your career well. MBA is added value to your career, to your education. Besides giving you an option of choosing your specialization MBA also trains you in economics, accounting, operations and marketing in depth. Internship being an important part of MBA gives the candidate the corporate world exposure required as most of the students need to join a company to know and live in the work culture.
Other comparisons that you may find useful
The decision between CFP vs MBA can be made easily if you are clear on what genre of knowledge you wish to pursue. The answer lies between financial planning or management. The scope gets restrictive to financial planning with CFP and wider with management in MBA. Make your choice wisely keeping in mind all that we discussed above.