CFP vs MBA

CFP exam is Certified Financial Planner Board of Standards, USA, and prepares you for estate planning, retirement planning, risk management, and financial management roles. Whereas, MBA is usually a 1- 2 year full-time course offered by various institutes and focuses on preparing students for many careers depending on specialization like Finance, Marketing, IT, Operations, HR, etc.

We will discuss the following in this article –

1. CFP vs. MBA Infographics
2. What is a Certified Financial Planner (CFP)?
3. What is a Master in Business Administration (MBA)?
4. CFP vs. MBA Exam Requirements
5. Why pursue CFP?
6. Why pursue an MBA?

Reading time: 90 seconds

Let’s understand the difference between these two streams with the help of this CFP vs. MBA Infographics.

CFP helps you gain a seal of professional certification as a financial planner. CFP gives you international recognition as a financial planner, affiliated organizations outside the USA, and the international owners of CFP. This course is conducted by the Certified Planner Board of Standards or the CFP board. This board is based in the USA. Twenty-five other organizations are authorized to conduct this certification course examination because of their affiliation with the CFP.

The examination continuously for two days for 4 hours per day gives you the designation of CFP, for which you need to pay a fee for registration, examination, and study material. And along with paying the fee, the candidate needs to meet the course's education criteria by appearing for examinations, experiencing financial planning, and following its ethical standards by following its code of ethics. The specifications of this course or this certificate are different for both the USA and the UK candidates.

This master’s degree is not just a certification; it’s a fully-fledged degree with options for multiple specializations. The institution you clear your MBA from will add national and international recognition to your career. This degree helps develop your talent and know-how important in building your career in business and management. This course helps you build your career in either a private or a public sector or even a government sector company. MBA focuses on important commerce subjects such as economics, accounting, marketing, and operations, along with other optional subjects that the candidate would like to pursue. The candidate can use the optional subject for personal or professional requirements. The most exciting part of the MBA is its internship program that the candidate can pursue in a company; this guides them to the right and required job opportunities after completing their course.

CFP

Requirements for examination:-

1. This examination does not need to be taken as it is a two-day exam for approximately 10 hrs with many multiple-choice questions.
2. The examination window opens in March, July, and November in different locations.
3. If you are not good at studying or have difficulties understanding the subject, please seek guidance as you need to pay the examination fee.

MBA

Requirements for examination:-

1. After clearing a GMAT or a GRE test, the candidate can seek admission to an MBA institute.
2. MBA is a 2-year program followed by graduation.
3. An internship is a part of this program.
4. In some institutes, only candidates with professional experience can apply.

If client management is on your mind and you are also good at planning finances for your clients, that is their money, you must complete CFP as it will add value to your career by boosting your talent and know-how skills. In addition, you can work for individual clients by handling their financial goals by guiding them through legal restrictions, financial laws, investment and tax planning, insurance and benefits, etc.

To understand the client better, you need to understand his financial requirements. For that, you need to understand the client’s business better. To do so, you need to prepare a background, do a little homework by interviewing the client, know about his finances, incoming and outgoing money, prepare a financial plan for your client, execute the plan accordingly and finally monitor the plan's outcome. That’s the financial planner’s moral responsibility,

CFP gives you the option of working as a self-employed, or in an organization as a financial advisor. These organizations can be insurance companies, banks, mutual fund companies, or AMC.

To add value to your existing career, an MBA is just perfect. 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, and to your education. Besides giving you the option of choosing your specialization, MBA also trains you in economics, accounting, operations, and marketing in depth. The internship is an important part of the MBA, giving 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.

The decision between CFP vs. MBA can be made easier if you are clear on what genre of knowledge you wish to pursue. The answer lies between financial planning and management. The scope gets restrictive to financial planning with CFP and wider with management in MBA. Please make your choice wisely, keeping in mind all that we discussed above.

• CFA vs. MBA - Which is Best?
• Claritas or CFP - Differences
• MBA vs. FRM - What's the Best?
• MBA vs. CIMA
• CPA vs. CS