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Engineers Should Study Finance: 5 Reasons Why

I'm a big proponent of engineers learning financial basics. Why? Because engineers are making decisions all the time, in multiple ways. Having a good financial understanding guides these decisions better.

Even if an engineer remains as an individual contributor as opposed to going into management, experienced engineers often become thought leaders in their organizations, involved in project priorities and strategic direction.

But when engineers do move up the management chain, financial understanding becomes critical. Portfolio mix, gross margin, and pricing are all elements that have to come together to have a sustainable and growing business.

For the full story, see EBN sister site EE Times.

— Larry Desjardin is the President of Modular Methods LLC, a consulting company, and a contributor to EE Times and EDN.

16 comments on “Engineers Should Study Finance: 5 Reasons Why

  1. apek
    July 23, 2014

    I think engineers should also study economics.

  2. Sarahbilly
    July 25, 2014

    I have seen majority of engineering students just focusing on their subject not looking to learn about finance pay someone to write my essay

  3. _hm
    July 25, 2014

    I find most engineers quite good with their finance. Also they can easiliy  research and study more on as per their need.

     

  4. Taimoor Zubar
    July 26, 2014

    Being an engineer who later did an MBA, I found finance to come naturally to me during my business education. Perhaps it was because engineers are trained to be good with numbers and can handle the complex calculations and quantitative subjects easily. Compared to stuff like marketing and HR, finance was more in sync with my earlier education.

  5. Taimoor Zubar
    July 26, 2014

    @_hm: I think engineers need to know finance if they really want to become C-level executives in the future. Across all senior company meetings, people don't discuss engineering concepts. They talk about the business metrics and indicators that every senior executive must understand. An engineering education can only get an engineer so far. The rest has to be acquired.

  6. SunitaT
    July 27, 2014

    @_hm: Most of the core engineers wouldn?t like to study finance, but they?d have to because the HR asks questions based on that subject too. I don?t think learning an in-depth finance is really needed unless you want to pursue a business degree or an MBA.

  7. Ashu001
    July 28, 2014

    Tirlapur,

    Everybody (including Engineers) should learn Basic Finance.

    I have to agree with you that Engineers don't need Complex Finance Solutions,etc.

    In fact it just messes with and Complicates their Lives further(unneccesarily).

     

  8. Houngbo_Hospice
    July 28, 2014

    @apek : That is actually a good idea. I think some engineering curricula include some aspect of enterprise accounting, economics and law.

  9. Houngbo_Hospice
    July 28, 2014

    See below the links to some free MOOC courses that may interest scientists and engineers who want to learn Economics, Finance, Accounting… 

    Principles of Economics for Scientists

    Introduction to Finance

    An introduction to Financial Accounting

  10. Himanshugupta
    July 30, 2014

    @TaimoorZ, i agree that engineers are better at numbers and logic thinking and related field such as Finance, Strategy, Analytics than HR, Sales and Marketing. But in general management courses engineer usually need to understand the bigger picture of the management.

  11. ahdand
    July 31, 2014

    @Himanshugupta: Coming up with numbers and graphics will catch the eye of the top level. They do not want detailed information but figures that can show what's needed. 

  12. Taimoor Zubar
    July 31, 2014

    “But in general management courses engineer usually need to understand the bigger picture of the management.”

    @Himanshugupta: Based on the comments from one of my MBA professors, that has been the hardest part when it comes to engineers. They will understand the finance and economic concepts but the ability to look at abstract things and the “big picture” as you'd like to call, that comes with years of struggle.

  13. t.alex
    August 18, 2014

    Engineers who want to take important role in the company needs to understand financial concept in order to see a bigger picture for the company. Of course they could team-work with finance team however it will help if engineers have some finance knowledge in order to make better decision for the company.

  14. VanessaCollister
    August 21, 2014

    The School of Engineering and Digital Arts successfully combines modern engineering and technology with the exciting new field of digital media. custom essays uk

     

  15. katejohn
    June 17, 2015

    yes you are right, i agree with your point

  16. suhasuseless
    July 20, 2015

    i think engineers should definitely study finance in order to  grow efficiently

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