Is a CFA Worth It for Those Planning to Attend Business School?

When deciding whether or not to pursue a Chartered Financial Analyst (CFA) certification, aspiring business school students often find themselves at a crossroads. This article aims to provide clarity by examining the pros and cons of obtaining a CFA, particularly in relation to business school admissions and future career goals.

The Relevance of a CFA for Business School Applications

While the admission committee at business schools may not heavily weigh a candidate’s CFA certification during the selection process, it is indeed a recognized credential that indicates a serious commitment to the field of finance. Stephen Frost, a reputable CFA charterholder, notes that the CFA is a valuable qualification that demonstrates not only a breadth of knowledge but also the dedication to rigorous study and exam-taking.

When he was studying for the CFA Level I over 18 years ago while pursuing MBA-level coursework at MIT’s Sloan School of Management, Frost found the CFA curriculum to be more challenging than the business school coursework. This level of thorough preparation can be a significant asset in demonstrating your preparedness and professional readiness.

Why a CFA Might Not Be the Best Path for Those Aiming for Broad Business School Experiences

If your ultimate goal is a general business education that is more about networking and gaining a powerful business pedigree, the CFA might not be the best investment. Most business schools are designed to structure the curriculum in a way that aligns with the goals of socializing and building professional networks, rather than emphasizing heavy exam preparation.

The CFA exam is rigorous and time-consuming, taking anywhere from 2 to 3 months of concentrated studying per level. This might interfere with other aspects of your education and personal life. Moreover, some business schools and professionals prioritize candidates who have received a more specialized education, such as a Master’s in Finance or Investment, which is tailored more specifically to the investment and financial management roles.

When Should You Consider a CFA?

Even though a CFA is not always necessary for business school applications, it can be a useful credential for those pursuing a career in investment analysis, portfolio management, and related finance roles. In these specific fields, having a CFA can give you an edge.

The CFA designation communicates that you have a solid grounding in financial theory and practice, which can be advantageous when you look for employment in the investment industry. However, it's not a substitute for a challenging and diverse curriculum found in a business school. A CFA shows that you have a certain base-level of knowledge and dedication, but it does not guarantee job performance or professional success.

Conclusion

In essence, whether or not to pursue a CFA depends on your career aspirations. If your goal is to become an investment analyst or portfolio manager, then a CFA can be a valuable asset. However, if you are aiming for a more general business education, you may find that a specialized MBA or Master’s in Finance is a better path.

Remember, the CFA requires significant effort and time. Consider whether your career goals align with the specific requirements and benefits of this credential. While a CFA can be a valuable addition to a finance-focused resume, it might not be the only or the best way to build a successful career in business.