Can Non-Finance Students Pass the CFA Program?
Last Update On 2nd December 2024
Duration: 5 Mins Read
The Chartered Financial Analyst (CFA) Exam is considered one of the hardest exams, requiring proper study and dedication. The exam is more gruelling, especially for students with no finance background. However, given proper preparation, a non-finance student stands a chance to pass this exam and become a CFA charterholder. Some tips and advice for non-finance students getting themselves ready to sit for a CFA exam are presented below:
Is It Possible for Non-Finance Students To Opt For CFA?
Yes, non-finance students can take the Chartered Financial Analyst (CFA) program. The CFA program is built to be inclusive of people from various educational backgrounds without necessarily undergoing formal training in finance. You could be an engineer, an entrepreneur, or even from the humanities, and still enroll in the CFA program and gain in-depth knowledge on finance, investment analysis, and asset management. So, let’s get a more detailed look at what non-finance students might expect:
- Access to Specialised Knowledge: The CFA program offers a solid basis in finance in everything from financial reporting and ethics to managing a portfolio. For non-finance students, it could be an excellent way to build up some expertise in investment management and financial analysis, areas that are not covered in most degrees outside finance. The curricula cover several topics of the financial industry and give candidates a deep dive into the complex aspects of finance, even when they may come in with little to no background in it.
- Overcome Learning Challenges: Students from nonfinance backgrounds can face a challenge since the CFA program assumes a certain level of financial acumen. For instance, many subjects like quantitative analysis, financial reports, and economics form a considerable amount of emphasis and such subjects can prove to be puzzling to those candidates lacking finance background. Nevertheless, with some additional study time and using precourse materials as one’s building blocks, the nonfinance candidate can gain up. Â
- Valuable Perspective and Skill Set: Students from non-finance backgrounds bring with them a different perspective, which is extremely beneficial in finance roles. For instance, engineers would normally have strong analytical skills along with problem-solving skills that can prove helpful in the role of quantitative finance or even risk management. Similarly, those who belong to legal and social sciences can bring with them insights regarding regulatory issues, behavioural finance, or corporate governance. This helps the non-finance students put their previously gained skills with new financial knowledge together to make them flexible and appreciated candidates for placements.
- Career Benefits and Global Recognition: The CFA charter is globally recognised, which can bring the most prestigious roles in investment management, equity research, and corporate finance. Acquisition of a CFA charter will make one stand out in job markets, especially for non-finance majors; hence it can be used as proof of hard work and capability. Employers appreciate charter holders for bringing rigorous financial understanding and well-rounded perspective, especially when combined with diverse educational or professional backgrounds.
To prepare for CFA, read this blog A Simple Step-by-Step Guide to Prepare for Your CFA
Commitment and Support: Non-finance graduates have to work hard and discipline themselves diligently in studying for the CFA because no proper background is provided to them in finance. Classrooms require extra study materials for those non-finance students to practice diligently so that their understanding of finance-related concepts takes root. Most prep providers for the CFA, as well as internet forums, offer candidate-specific help for those from non-finance backdrops.
CFA Exam Preparation for Non-Finance Students
If you are a student from a nonfinance background preparing to take the CFA exam, start as early as possible. The CFA exam has three levels to pass; each level requires a lot of time and effort to pass. Usually, it takes at least 300 hours of study time per level.
As you start preparing for the exam, learn the CFA curriculum. You can do this by reviewing the CFA Institute’s website, which provides an overview of the curriculum for each level of the exam. You should also purchase study materials, such as CFA exam prep books, practice exams, and study guides.
CFA Exam Coaching for Non-Finance Students
In addition to self-study, non-finance students can also be assisted by a CFA exam coach. A coach will guide and support the students in the preparation stages of the exam and point out areas where development is required. A coach can provide a customised study plan for you to help you stay on the right track. A coach is also useful in giving motivation as well as accountability, which is particularly helpful for non-finance students who might feel intimidated by the exam.
While selecting a CFA exam coach, prefer someone who has specific experience in coaching nonfinance students. Ideally, the coach also needs to have a good track record of helping students pass the exam. You should also consider factors such as the coach’s availability, communication style, and coaching approach.
How to Pass the CFA Exam Without a Finance Background
- Passing the CFA exam without a finance background is challenging, but it is not impossible. Non-finance students will pass the examination if they stay focused on their strengths, with an intense study plan, and master practice.
- The knowledge gap can be overcome by taking a CFA accounting course before sitting for the exam. An accounting course will give you a strong foundation in financial statements, accounting principles, and financial analysis. This could help non-finance students understand the material covered in the exam.
- Another approach is to focus on the quantitative part of the exam. Some parts of the exam help non-finance students, such as statistics, economics, and quantitative methods. The focus on these sections would help the nonfinance students build their confidence and therefore help them do well overall with the exams.
- For students of non-finance, practice exams and mock tests should be their top priority. Practice exams will help identify areas of weakness and provide an opportunity to apply concepts to real-world scenarios. Mock tests also make simulations of actual test conditions and will help you with your time management skills.
Conclusion
Preparing to pass the CFA exam is something that needs a lot of effort from a non-finance student. Still, by following these guidelines and tips, non-finance students would have the best chance of passing the exam. Those include preparation in advance, a good study plan, consistent practice, and work with a coach. Â Non-finance students can certainly become CFA charterholders by adopting the right approach. So, if you think of a future career in accounting and finance, don’t hold back and come along to enroll for the CFA course; just contact us here at Zell Education, and we will be more than happy to counsel you.
FAQsÂ
Can I do a CFA without a finance background?
CFA is an open program for all backgrounds. Although a basic understanding of some finance aspects will help you understand the material better.
How hard is CFA level 1 for non-finance?
A CFA level 1 is a bit tough for a non-finance professional due to technical content, but with a proper study plan and dedication, you can manage it.
Is CFA worth it for non-finance professionals?
Yes, CFA is worth trying. The CFA is beneficial to non-finance professionals seeking entry into finance; it’s one of the most respected professional courses in the industry. It instills core knowledge of the finance and accounting industry.
Can CFA be done without work experience?
Yes, one can sit for the exams without experience, but generally, 4 years of relevant experience are required to earn the CFA charter.