Advice needed: Physics/math minor for IB??
Although I’m unsure which division of IB I want to pursue, I’ve heard from sources like Wall Street Skinny and from my personal experience that math in finance is quite similar to the math in my high school physics class. If I get into a school that allows me to minor outside of the business school, with finance as my major, would it make sense to minor in a STEM or math-related degree? If so, which should I choose—perhaps physics?
Im a high school junior, advice for college academics for IB/High finance appreciated.
Whoever is convincing these kids that the maths in finance in any way aligns with the maths in degree level Physics is doing some A-grade level trolling.
Thanks for your response. Any recommendations for what to minor in college for IB?
It doesn't matter, just go to the best college.
Unless you want to go into S&T then something coding oriented may help the tiniest amount.
Physics is not going to be particularly helpful.
Math could be helpful, albeit a minor in math rarely gets you to the types of classes where you receive a benefit, but not in the way you're probably expecting. The math in finance is not advanced. It is not hard to do. Most kids who get to high school have enough math to do the job. Where a math degree could potentially help is in the soft skills. At the highest level, there are really two different ways of doing math: formulaically and proof-based. Proof-based math can be helpful for developing soft skills. Spending entire classes creating proofs is a useful way to develop the skills you'll need for turning your Excel mush into something people can actually use.
The benefits of a math degree for IB is zilch until you get to proof-based math, which you generally aren't able to get meaningful experience in as a minor. Broadly speaking, to get a minor you need 18 credit hours. That comes out to ~6 courses. Most math minors will require you to take the Calc sequence (normally 3 classes) and linear algebra. These will not be proof-based math. That leaves you with ~2 classes for you to choose from. You are not going to get much of a benefit from a math minor if only two of your classes are proof-based. That's just not enough classes. Like sure. You'd be able to take an analysis (proof-based calculus) and modern algebra (proof-based algebra) class, but is going through the pain that is a math minor worth that little of where the real benefit is? I say no. But this is also just one person's view. Take it for what it's worth.
In terms of a minor outside of the business school, I think there are two useful paths to consider. The first is based on industry interest. Do you want to go into renewables/utlities/etc? Then look at a minor in industrial engineering. Want to go into tech? Look at computer science. Interested in manufacturing businesses more broadly? An aerospace engineering minor is a good thing to consider. Even though aerospace engineering is going to teach you aerospace specific material, it is far more generalizable than most other engineering degrees in regards to utility for finance. The other path is to use a minor to load up on soft skills. A minor like communications or creative writing, while not the sexiest, could help you a lot with the soft skills. IB/PE/etc is fundamentally a communications job. Being able to communicate better than others provides a lot more of a comparative advantage than being able to run the numbers better than others. The reality of this business is that the numbers don't really matter beyond making sure they are within some minimally acceptable band.
Thank you, this was very helpful.
Non-trading fundamental finance tracks (IB, ER) generally stick to add, subtract, multiple and divide. I’ve actually never done anything beyond rudimentary system of equations, which is Algebra 1/HS freshman type stuff.
I’d say that beyond signifying to employers that you’re an intelligent person (which is a great benefit in itself), the added utility provided by a stem minor going into IB is low unless you want to cover a sector that the minor is considered “domain knowledge”.
Outside of IB tho, something like math/physics would certainly be accretive in quant-oriented roles like algo trading, risk analysis, etc., which can provide a great career earnings path and plenty of career opportunities both on and off Wall Street. I think people often discount the exit opportunities for quant roles outside of “high finance”, but there’s great career tracks with strong $$$ potential like product analytics.
Looking back, I wish I had used a minor to pursue learning something that interested me outside of finance, like environmental science or literature. There’s a ton of personal value in that, and can often signify to employers that you’re a well-rounded person which is important in differentiating yourself in interviews.
Some might disagree, but don’t take your minor too seriously! University is a rare chance to take on interesting challenges you’ll be unlikely to start when you’re a working professional.
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