Is Daily Reading Better for CFA Level 1 Ethics Than Cramming?

Preparing for the CFA Level 1 exam requires a comprehensive understanding of various financial concepts, including Ethics. While some may opt to cram the material a few months before the exam, studies have shown that a daily study routine is generally more effective. This article will explore the benefits of consistent, daily reading and the drawbacks of cramming for CFA Level 1 Ethics.

Benefits of Daily Reading

RetentionPolicy and Understanding

Regular exposure to the material improves retention and understanding. Ethics can be nuanced, and consistent review helps reinforce key concepts. This approach allows the brain to absorb and retain information more effectively, leading to better long-term recall.

Application of Ethical Principles

Daily study allows you to reflect on and apply ethical principles to different scenarios, which is crucial for the CFA exam. This practical application ensures that you understand how to integrate ethical considerations into your financial analysis, a key requirement for success in the CFA Level 1 exam.

Stress Reduction

Spreading out your study reduces last-minute stress. By consistently reviewing the material over a longer period, you build a solid foundation of knowledge that reduces the anxiety often associated with cramming at the last minute. This approach helps you feel more prepared as the exam date approaches.

Reinforcement

Frequent review of Ethics will help you integrate it with other topics. Ethical considerations often overlap with various areas of finance. A daily study routine ensures that these connections are reinforced, leading to a more cohesive understanding of the material.

Drawbacks of Cramming

Short-Term Memory

Cramming may lead to short-term retention, which can fade quickly if not revisited. This makes it less likely to recall the information when you need it most, during the exam. Effective long-term retention is crucial for success in the CFA Level 1 exam.

Overwhelmed by Material

The CFA curriculum is extensive, and trying to learn significant amounts of content in a short time can be overwhelming. This can lead to burnout and reduced effectiveness in study, ultimately hindering your performance on the exam.

Limited Understanding

Ethics requires not just memorization but also a deep understanding of principles and their applications. Cramming without proper understanding can leave you unprepared to handle the nuances of ethical scenarios on the exam, resulting in poor performance.

Conclusion

In summary, adopting a daily study routine for Ethics is likely to yield better results than intensive preparation a few months before the exam. This approach helps you build a solid foundation in ethical principles, which is crucial for both the exam and your future career in finance.

I leave the strategy up to you, but based on my experience, I believe the CFA Institute places a higher weighting on Ethics because they want ethical people holding the designation or at least people who know how to be ethical. While I don't have evidence to support this, I have noticed anecdotally that if you score high on ethics, you are more likely to pass even if you are borderline on other subjects. Conversely, if you score poorly on ethics but well on the rest, it could skew towards failure. Given this, pursuing a strategy that offers the highest score in Ethics is recommended. I treated it as a welcomed break from the quantitative study and would either finish on it or put it at the halfway point in my daily studies.