“I don’t do numbers!” This phrase has been uttered by my lovely wife, the artist. She is amazingly talented, with her artwork displayed across the globe. But she claims to “not do numbers.”
Recently, she and our daughter, also an artist, decided to partner together on a business, turning their work into jewelry. One of their distribution sources is Etsy, a website catering to independent artists, enabling them to market their wares worldwide. They proudly concluded their first month of operation and proclaimed a success with a profit. (It is important to note here that artistic success and profit rarely collide.)
As they shared their initial successes and plans for more in the future, I could not resist, and the finance guy in me had some questions. I asked about sales and expenses. The sales were pretty straightforward, as it’s a cash accounting system. However, when it came to the expenses the discussion was more, um, interesting? They described the supplies they purchased, the costs of selling, and more. But when pressed for paying for these items, they admitted that most was charged on my credit card and had not been paid. Anyone see a problem here? Well, I did.
Any financial operation, be it a business or a family, has to account for its income and expenses. A degree in finance builds a foundation to do this accounting. It helps understand the impact of future cash flows and provides a means to compare different opportunities. It will give you a way to compare the financial impact of option A to option B to option C.
"A finance degree will give you the tools to assess investment opportunities and help you decide if it is a good investment."
Later, my wife asked about Etsy. You see, they just went public a couple of months ago. She was curious if it was a good investment. A finance degree will give you the tools to assess investment opportunities and help you decide if it is a good investment. Is Etsy a good investment? It depends on how you define “good.” Finance can help you answer that question for you and your family.
Oh, and a degree in finance may help you know when you’re getting stuck with the credit card bill.
To read more about the Johnson & Wales University Master of Science in Finance degree click here.