Have you recently registered for the CFA® Level I exam and are wondering which Practical Skills Module to choose? This article is for you!
The CFA Institute introduced Practical Skills Modules in the 2024 program to better meet the needs of the job market by adding a practical component to the curriculum. These are video training modules with knowledge quizzes, simulation exercises, and case studies that must be completed to obtain your exam results (within 5 to 7 weeks of the exam). Completing the Practical Skills Modules requires 15 to 20 hours of work.
For CFA Level I candidates, two options are offered for this year 2026: financial modeling and python programming fundamentals.
Everything you need to know about the practical skills module CFA® Level I:
Financial modeling module:
Financial modeling skills have become essential for pursuing a career in finance. Models synthesize a wealth of information for you instantly, allowing you to make better investment decisions. But a model can only be effective if you don't understand it. Ultimately, it's the user's technical expertise, their understanding of the business, and their ability to design or improve the model themselves that determine its effectiveness!
In the financial modeling module, you will learn how to build three-statement financial models. You will discover best practices and the different stages involved in model design, and you will strengthen your Excel skills through practical exercises.
Prerequisites: In order to follow the financial modeling module, it is recommended that candidates have knowledge of the basic principles of financial modeling or have completed the content of the Financial Statement & Analysis program at level I.
You can find further details and a demonstration video on the CFA Institute website here: https://www.cfainstitute.org/programs/cfa/financial-modeling
Python Programming Fundamentals module:
More and more employers expect their teams to have knowledge of Python. Python is the most widely used language for machine learning, artificial intelligence, and big data projects in Data Science due to its efficiency, versatility, and scalability.
In the Python Programming Fundamentals module, you will explore the basics of Python and how to use Jupyter Notebooks to develop, present, and share finance-related data science projects. Throughout this module, you will rapidly develop your coding skills by applying them to dozens of industry-specific examples. By the end of this module, you will have the tools you need to immediately apply what you have learned.
Prerequisites: In order to follow the python programming module, it is recommended to have a basic knowledge of quantitative methods at level I of the CFA®.
You can find further details on the CFA Institute website here: https://www.cfainstitute.org/programs/cfa/python-programming-fundamentals
So which module would be the most suitable for you?
The choice between the Financial Modeling module and the Python Programming Fundamentals module depends largely on your career goals, personal interests, and the job market requirements in the finance sector.
Here are some factors to consider to help you decide:
Career goals:
If your primary goal is to work in roles related to financial analysis, financial planning, or portfolio management, the financial modeling module might be more relevant.
If you are planning to work in fields such as quantitative finance, risk management or financial data science, the module on the fundamentals of programming in Python might be more suitable.
Skills:
You can choose to reinforce and deepen your knowledge if you already have a foundation in one of the two modules, or you can use these modules to explore a new topic. If you choose the second option, remember to check the prerequisites for each module.
Market Requirements:
Research the market requirements in your region or the financial sector where you plan to work. Some companies may value financial modeling more highly, while others may prioritize programming skills, particularly in Python.
Personal Interests:
Choose the module that excites you most and best matches your interests. These modules will complement the work you've already undertaken in your CFA® preparation, so choose what you enjoy most! This generally leads to better results and greater professional satisfaction.
Ultimately, it can be helpful to consult with industry professionals, mentors, or colleagues for advice specific to your situation. Whichever path you choose, both skills—financial modeling and Python programming—are extremely valuable, and each can open up exciting career opportunities.