What is the difference between finance and economics?

So, economics is analysing charts, maths, the job market, forecasting the economy and money, right? And finance, isnt that all about getting a loan, dividends, the price of gold and that section in the middle of the newspaper full of numbers in tiny font? Well, not quite...There are a few pervasive rumours floating around on our friends economics and finance, so we thought wed set them straight and explode some myths. Explosions are fun! While economists sometimes use charts and a calculator, the study of economics is thankfully much broader than that. Economics looks at the big picture of how decisions are made within and between families, businesses, and society to meet peoples demands for things they want to consume. Essentially, economics is a social science that joins the dots on how societies allocate their resources who gets what, and why? Why does an iPad cost what it does? Why is water labelled a scarcity? How come there are so many mobile phone models available in the market? Why is the global price of food so high? To study economics is to seek answers to these kinds of questions by understanding production and consumption decisions in a world of limited resources. Today, economics graduates have a great foundation for a diverse number of careers, particularly in the corporate world. Graduates have been employed at trading and merchant banks, stockbrokers, insurance companies, accounting firms, financial planners, infrastructure and utility companies, manufacturers and distributors and a wide range of federal and state government organisations. As an economics graduate you have the potential to become a business consultant, economic researcher, corporate or government policy adviser, business analyst, banker, data analyst, or health economist. Economics graduates of the University of Adelaide have even been known to enter into journalism, teaching, foreign affairs and international consulting. Hows that for options! If economics is a tree, then finance is one of its branches. A simple definition of finance is the management of money and assets, particularly by big companies or governments. Modern finance is a hive of activity, incorporating business finance, public finance and personal finance. Economics is the thinking, and finance is the doing the evaluation and application of economic theories in real scenarios. Imagine your friend has asked to borrow money from you. What factors would you consider before saying yes or no? Perhaps how much money you would have to lend? When you would be repaid, and how? What is your friend going to do with the money? Is it risky? Is your friend reliable? These kinds of questions are mirrored in the financial world with notions like the time value of money, interest rates, optimal financial structures and the quantification of risk. Finance can inform investors and business managers on the most efficient way to allocate funds or assets, just as it can assist you in evaluating whether to loan your mate a fiver for a burger. If you enjoy this mode of thinking, you may be geared to study finance. Finance graduates are hired in similar places as economics graduates, but with varying career options. Finance graduates are involved in major tactical and strategic decisions for their companies. If you like the sound of fastpaced, loud, high-level negotiations, finance could be your ticket to becoming a commodities or futures trader. Perhaps you have a secret passion for maths and statistics, or you like to look to the future and assess the financial outcome of a situation or event? An actuarial role might be just the right fit. Are you a born leader who envisions providing advice on maximising profits, or forecasting budgets? Studying finance could get your name on the office door as finance manager. Finance grads also end up in cool positions such as fund and portfolio manager, or international government and trade policy advisers. With these career options, studying finance just may be the right investment.