Should You Pursue CFA While Working or as a Student?

Pursuing the CFA as a Student or Fresh Graduate

For students, particularly those studying finance-related disciplines, taking the CFA exams early can be an appealing option. Below, we explore the pros and cons of pursuing the CFA as a student or recent graduate.

• Pros of Pursuing the CFA as a Student

1. Fresh Academic Knowledge

As a student or recent graduate, your academic foundation is still fresh. You are already in a study mindset, making it easier to grasp CFA Level 1 concepts such as economics, quantitative methods, and financial reporting.

2. More Study Time

With fewer professional responsibilities, you can dedicate more hours to CFA preparation. Since most candidates need 300+ hours per exam level, students generally have an advantage in terms of available study time.

3. Early Career Boost

Starting the CFA program early can fast-track your career by demonstrating commitment to the finance industry. Passing CFA Level 1 or Level 2 can enhance your job prospects for entry-level roles such as financial analyst, research associate, or investment analyst.

4. Networking Opportunities

Engaging with CFA study groups and attending CFA society events can help build valuable industry connections, leading to mentorship opportunities and potential job prospects.

• Cons of Pursuing the CFA as a Student

1. Lack of Practical Experience

As a student, you might struggle to understand some CFA topics due to limited real-world experience. Key areas like portfolio management and risk analysis become easier to grasp with hands-on exposure.

2. Work Experience Requirement

Even if you pass all three CFA exam levels, the CFA Institute requires four years of relevant work experience to earn the CFA charter. This means you may need to wait several years before officially becoming a CFA charterholder.

Pursuing the CFA While Working

Many professionals choose to pursue the CFA designation while working full-time. Though challenging, this approach offers several benefits.

• Pros of Pursuing the CFA While Working

1. Real-World Application

Studying for the CFA while working allows you to immediately apply concepts such as equity valuation, financial modeling, and portfolio management to your job, deepening your understanding.

2. Employer Sponsorship

Many companies offer financial support, study materials, and paid leave for CFA candidates. Some firms also value CFA certification, making it easier to balance work and studies.

3. Stronger Professional Network

Being in the finance industry while preparing for the CFA exams allows you to connect with colleagues and professionals who are also pursuing or have completed the CFA program.

4. Career Growth Opportunities

Passing each CFA level can lead to salary increases, promotions, and new job opportunities in finance, investment banking, asset management, and corporate finance.

• Cons of Pursuing the CFA While Working

1. Time Management Challenges

Balancing a full-time job and CFA preparation is demanding. Candidates often need 15-20 hours per week for effective study, which can impact work-life balance.

2. Risk of Burnout

The combination of work pressure and CFA exam stress can lead to burnout. Proper time management and scheduled breaks are crucial for maintaining productivity and motivation.

3. Limited Social Life

Juggling work and CFA study leaves little time for hobbies, socializing, or personal activities, making the journey mentally exhausting for some candidates.

Factors to Consider Before Making Your Decision

Regardless of whether you choose to pursue the CFA as a student or while working, here are some critical factors to consider:

1. Career Goals

• If you aim to enter investment management, portfolio management, or equity research, starting the CFA early can provide an advantage.
• Working professionals can leverage their CFA progress to move into higher-paying finance roles.

2. Work Experience Requirement

• CFA candidates need four years of relevant work experience to obtain the CFA charter.
• Fresh graduates must build this experience over time, whereas professionals may already meet this requirement.

3. Time Availability

• Students generally have more flexibility for CFA preparation.
• Working professionals must strategically plan study schedules to avoid burnout.

4. Financial Support

• CFA exam fees and study materials can be costly
• If your employer offers sponsorship, pursuing the CFA while working can reduce the financial burden.

Final Verdict: Which Path is Best for You?

There’s no definitive answer to whether it’s better to pursue the CFA as a student or while working. The best path depends on your individual circumstances:

For Students/Fresh Graduates: If you have the time, motivation, and financial resources, starting the CFA program early can give you a competitive edge in job applications.

For Working Professionals: If you are already in the finance industry, the CFA can help accelerate career growth, but managing time effectively is crucial.

If you found this article helpful, explore more CFA-related content on CharterBuddyy! Happy studying!