Rebuilding Smarter: Why Every Engineer Should Study Finance

Engineering is about building things—roads, bridges, systems, solutions. But what happens when those things cost money, go over budget, or fail because no one crunched the numbers?

That’s where finance comes in.

Most engineers don’t study finance. They focus on design, materials, and code. But in today’s world, building smarter means budgeting smarter, too. Understanding money makes engineers better decision-makers. And in complex projects, money is often the difference between success and failure.

In the U.S., over 85% of large infrastructure projects go over budget or miss deadlines. Many fail not because of poor design, but because of poor planning and weak cost control.

A McKinsey report found that large capital projects typically run 20% over budget and take 20% longer than expected. Finance isn’t just for accountants. It’s for anyone trying to make an idea work in the real world.

Engineers with finance skills are more likely to lead projects, influence decisions, and stay in control when costs rise. They can also spot risk before it becomes a failure.

Roger E. Merritt Jr., built a long career by combining engineering and finance. He started as a civil engineer. He later earned an Executive MBA in finance. That shift gave him new tools to manage big budgets and make smarter calls.

“When I was managing landfill closures,” Merritt said, “it wasn’t just about the technical specs. It was about the budget. Knowing both sides helped me spot where money was being wasted—and fix it.”

Merritt ended up saving millions across public and private projects by applying engineering logic to financial problems.

Imagine building a bridge without knowing the cost of steel. Or planning a power plant without understanding loan terms.

Engineers who understand capital costs, Return On Investment (ROI), and cash flow build smarter. They can plan for what’s possible—not just what’s ideal.

A basic knowledge of financial modeling, budgeting, and payback periods helps engineers justify decisions. It also helps them explain trade-offs clearly to stakeholders.

Engineers often struggle to explain ideas to business teams. Finance gives them a shared language.

If an engineer wants to pitch a more sustainable material that costs more upfront but saves money long term, finance helps prove the case. Being able to show cost-benefit over time wins arguments and builds trust.

Technical people often get stuck in middle management. Finance skills open the door to bigger roles—project lead, department head, even CEO.

About 30% of Fortune 500 CEOs studied engineering. But the ones who rise usually have business training too.

You don’t need a finance degree to start. These five areas are enough to give any engineer a serious edge:

Start small. Learn to read a profit and loss statement. Try building a simple project budget. Ask questions. Finance is a skill like any other—learnable.

Once you understand basic finance, start applying it:

Over time, people will notice. You’ll be trusted not just for your tech skills, but for your business sense too.

In one of his roles, Merritt led a project to close a large landfill. Engineers designed the closure plan. Contractors submitted bids. But the initial plan was $10 million over budget.

Instead of cutting corners, Merritt used his finance training to rework the timeline, restructure contract terms, and adjust the staging. The revised plan hit all engineering goals—and came in under budget.

That kind of cross-discipline thinking doesn’t just save money. It builds confidence across teams.

“When you understand both the blueprint and the balance sheet,” Merritt said, “you stop being just the engineer. You become the person everyone depends on.”

Projects today are more complex. They involve global teams, public funding, and long timelines. Engineers don’t just build—they manage people, money, and risk.

In 2023, the World Economic Forum listed “financial literacy” as a top skill for technical leaders. The more tech-heavy a project gets, the more important it is to manage cost, timing, and value.

With budgets tighter, companies want engineers who think like business owners.

If you’re an engineer today, learning finance is one of the smartest moves you can make. You’ll see problems earlier, explain ideas more clearly, and get more accomplished with fewer surprises.

You don’t need to change careers. You just need to upgrade your toolkit.

And when the next big opportunity shows up—the kind that needs both a problem-solver and a money-minder—you’ll be ready.

Learn finance. Build smarter. Lead better.