How important is math skills in economics?
Hey,
I am currently in my last year in high school and I will be going to the University of St Gallen in Switzerland next year. I have always been amongst the top students in my class, and is a very social guy. I have since the financial crisis in 07-08 been very interested in finance and macroeconomics, and begun investing in the markets when I was 14.
The only concern I have is that my math skills are average. I have never been able to really excel in math and i have realized that I will never be much better than slightly above average (got 560 in the math section on my SAT). So my question is essentially if it will be possible to really get to a high level in finance(which is my preferred field in economics) or in an economics field with average math skills.
If this question is already answered somewhere else, or if this type of question doesn't belong in this forum I am sorry.
You don't need to be a math genius to do well in finance or economics at the undergraduate level (though economics is very math-heavy at a graduate level), or to work in most roles in an investment bank.
That said, 560 is really terrible considering the math portion of the SAT is basically at a 9th or 10th grade level. Even though you don't need to be great at math for a career/study in finance, you do need to be comfortable with numbers, be able to grasp advanced quantitative concepts, and understand how changes to models/equations will affect outcomes. Scoring a 560 indicates you may have difficulty with that.
560 isn't great, although it's well above the average. You don't need high level math skills for undergraduate finance or economics; however, for graduate level finance and economics, you need pretty solid math skills.
As a point of reference, my SAT math and verbal were I think 590 and 750, respectively, and I struggled through calculus, finance, accounting, economics, statistics, and computer classes at the undergraduate level until one day toward the end of my senior year it all just "clicked." For whatever reason the math all just started to click and I was able to dominate the GMAT, CFA exam, and graduate level courses I took in accounting, finance, and economics.
So the reality is, you may very well struggle your way through college-level quant courses; however, don't lose hope because one day it all might just "click" for you. Then again, it might not, but you don't need a PhD in economics to excel in financial services.
Math is important for Economics but you can get away with being average at it. Make sure you pick coursework that aren't math heavy. Most universities require up to calculus 2 but offer economics classes which aren't to quantitative and instead function very similar to the social sciences.
Do someone have any comments on which type of math I should focus on? I know there are a lot of calculus in finance and economics, but could someone give a more in depth answer too which field in math I should focus on for the remainder of high school?
Focus on the fundamentals of precalc and calc. The majority of upper level econ classes are based on calc 1 and 2 but its not too difficult.
Your math skills are almost as important as your grammatical skills.
I was thinking of writing that but as he's planning on going to university in Switzerland, English may not be his first language. (Although most Europeans are proficient in it.)
The SAT is given in English, even the math portion, so that could partially be reflective of a lower math score than, say, an equally skilled native English speaker.
Depends where in finance you want to go, but it's doable. Focus on calculus in high school. Take at least until intermediate calc, statistics, linear algebra, and econometrics in university. Sorry to break it to you kiddo, but 560 in math is not average, it's actually pretty bad (no offense). Focus on not only getting high grades in your math courses but make sure you actually understand the concepts. Do tons of extra problems until you get the concepts. Don't resign yourself to being "average" at math, always strive to be better. My post isn't meant to offend, only to motivate.
I don't think you know what the word "average" means. A quick google search shows that 513 is the average math SAT score. To say that "560 in math is not average" is a pretty stupid statement.
Okay you're right. I should have been a bit clearer. For people going into finance a 560 is not average. He may be average among athletes, community college students, and the national student body taking the SATs, but to say that a 560 is average among finance undergrads is pushing it.
He's going by his standard, like my Asian parents would always tell me that 90% is average.
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