What’s the Difference Between a Certification and a Degree?

Written by Kelly Bailey

Reviewed by Jeff Schmidt

Read Time 4 minutes

Many finance careers involve degrees and certifications. Both build knowledge and strengthen your qualifications, but they serve different purposes. Degrees establish theoretical foundations, while certifications offer focused learning tied to a specific career path.

This guide breaks down how they differ in structure, cost, skill development, and career impact, so you can better understand how each fits into your path.

Difference Between a Certification and a Degree

Key Highlights

Degrees and certifications both matter in finance, but they offer different types of learning and career benefits.

Degrees provide broad academic foundations, while certifications focus on specialized knowledge or practical skills.

Certifications don’t replace degrees, but they can help you specialize, stand out, or switch careers.

What is a Degree?

A higher education degree is an academic qualification conferred by colleges or universities upon completion of a structured program of study.

Degrees in finance, accounting, or business such as a Bachelor of Science in Finance or a Master of Finance, provide a broad foundation in financial principles, analytical skills, and business acumen. These programs often include coursework in economics, accounting, and quantitative methods.

What is a Professional Certification?

A professional certification is a credential awarded by a recognized industry body or private training provider independent of a higher education degree. Certifications are designed to help professionals bridge the gap between their degree and applied finance, i.e., how finance actually works in businesses and financial markets.

Career-Specific Development

Certifications can also help you gain targeted expertise for a specific career path, such as a financial analyst or wealth manager. You can earn a certification in an area that will bolster your existing career or help you move into a different area of finance.

For example, if you start out in accounting and later want to move into financial planning and analysis (FP&A), earning an FP&A certification can help.

Many professionals pursue certifications to:

Demonstrate advanced subject matter expertise
- Example: Chartered Financial Analyst (CFA®) Program

Build specific practical skills for immediate career application.
- Example: Financial Modeling & Valuation Analyst (FMVA®) Certification

This career-focused training makes certifications distinct from degrees, which provide a broad academic foundation across multiple disciplines.

Difference Between a Certification and a Degree - CFI

Certification vs. Degree: Key Differences Compared

Certifications and degrees both help you build finance skills, but they differ in how long they take, how they’re structured, and what you learn. This side-by-side comparison highlights some of the most important differences.

Category	Certifications	Degrees
Time Commitment	• 6 months to 3 years, depending on the program.	• 4 years (bachelor’s). • 2–3 years (master’s).
Type of Training	• Advanced subject matter expertise, or • Focused, skills-based, highly applied.	• Broad theoretical foundation with some practical coursework.
Program Requirements	• Completion of required courses. • Passing a final exam or series of exams. • Some, like CFA, require a degree and work experience.	• Passing grades in all required credit courses (specific requirements vary by school and program).
Costs	• $350 up to $5,000, depending on program).	• $40,000 to $150,000+ depending on school, country, and program level.

To learn more, explore a more detailed comparison of CFI’s FMVA and other key industry certifications.

Benefits and Considerations for Aspiring Finance Professionals

Degrees Provide a Broad Foundation and More Opportunities Early On

That said, certifications often focus on narrow skill sets. They’re a great supplement, but not a substitute for a college degree. Most entry-level finance roles still require at least a bachelor’s degree. A degree also gives you access to on-campus recruiting, internship programs, and alumni networks opportunities that are hard to replicate outside of school.

Certifications Offer Specialized Knowledge or Practical Skills

Certifications help you develop expertise in a specific area of finance whether you’re aiming to deepen your knowledge or build hands-on skills for a particular role.

Some programs, like CFA and FRM (Financial Risk Manager), focus on broad subject mastery and signal advanced understanding of financial theory and risk. Others, such as CFI’s FMVA, prioritize practical, job-ready training in areas like financial analysis, modeling, and valuation.

This targeted learning makes certifications a flexible way to grow professionally. You can use them to stand out in a competitive job market, prepare for a new role, or round out your degree with specialized skills.

Combining Both Can Help You Stand Out

The most effective path often combines a degree to open doors and a certification to help you stand out to employers and start a finance job prepared for day one.

Difference Between a Certification and a Degree - Course Certificates

Key Takeaway: Certification vs. Degree

Both degrees and certifications play important, yet different, roles in preparing for a career in finance. A degree gives you a broad academic foundation and meets the education requirement for most finance jobs. Certifications help you build specific, job-ready skills that strengthen your qualifications and expand your career options.

If you’re looking to develop practical finance skills in financial modeling, valuation, or banking, CFI’s certifications and specializations offer self-paced, hands-on training designed to prepare you for a wide range of finance career paths.

Explore All Certifications!