Adding another requirement to an already demanding CFA Level 1 preparation can feel overwhelming. With the right Practical Skills Module (PSM), those extra hours can help you develop practical, job-ready skills that strengthen your resume and support your career goals. Understanding what each Module covers can help you choose one that makes that time worthwhile.
CFA® Level 1 PSMs at a Glance
Short on time? Here is the key point on which PSM to choose:
- Financial Modeling: Choose this if you are aiming for Investment Banking, Private Equity, or Corporate Development, or if you need to build core Excel skills.
- Python Programming: Choose this if your goal is Quantitative Analysis, Algorithmic Trading, Data Science, or automating massive datasets.
- The Golden Rule: The PSM is a pass/fail requirement and does not impact your actual exam score. You just need to finish it before the results day!
What Should You Know About CFA Level 1 PSMs
PSM is designed to help you apply what you learn in the curriculum to practical, job-relevant tasks. Instead of adding more theory to your study load, PSMs focus on developing skills you may use in real-world finance roles.
The modules combine videos with guided practice, case studies, and multiple-choice questions, allowing you to learn by doing. More importantly, completing a PSM is a requirement for receiving your CFA Level 1 exam results, so it needs to be part of your overall exam plan.
Here's what CFA Level 1 candidates need to know:
- Requirement: You must complete one PSM to receive your Level 1 exam result.
- Time commitment: Plan for approximately 10–20 hours to complete a module.
- Format: Modules include videos, multiple-choice questions, guided practice, and case studies.
- Grading: PSMs are not scored. The requirement is based on completion.
- Access: You can begin your PSM after registering for the CFA Level 1 exam.
When Should You Complete Your CFA PSM
Your PSM may be required, but it doesn't have to compete with your most important exam preparation. A practical approach is to plan its completion around your CFA Level 1 study schedule.
- Prioritize the core exam: Use the weeks leading up to exam day for curriculum review, question practice, and mock exams.
- Use the results window: After taking Level 1, you typically have a 5–7 week wait before results are released. This can be a good time to complete your PSM without taking time away from exam prep.
- Set aside dedicated time: A PSM takes several hours to complete, so plan for it rather than trying to fit it into leftover study time.
- Leave yourself a buffer: Your PSM must be completed before results are released. Avoid leaving the entire module until the end of the results window.
Prepare for CFA® Level 1
Which CFA PSM Fits Your Career Goals: Compare Your Options
For CFA Level 1, each PSM develops practical skills for different areas of finance. Financial Modeling strengthens Excel, forecasting, and modeling skills, while Python Programming Fundamentals focuses on coding and financial data analysis. Your choice depends on your current skills, career goals, and what you want to learn next.
Financial Modeling PSM
If Excel and company analysis are closer to your career goals, the Financial Modeling PSM is the more natural fit. You'll work toward building a three-statement financial model while developing Excel, forecasting, and financial modeling skills.
What you'll learn:
- Financial modeling best practices
- Model schedules and three-statement models
- Advanced Excel techniques
- Common financial modeling problem-solving skills
Consider it if: You're interested in areas such as investment banking, private equity, equity research, corporate analysis, or other roles where financial modeling is widely used.
Resume Tip: Add the completed CFA Institute Financial Modeling Practical Skills Module under professional development or certifications.
Python Programming Fundamentals PSM
Prefer working with data and code? The Python PSM for CFA candidates introduces Python through finance-focused applications using Jupyter Notebooks. You'll learn programming fundamentals and use tools such as Pandas and Matplotlib to work with financial data.
What you'll learn:
- Python programming fundamentals
- Jupyter Notebooks
- Pandas and Matplotlib
- Portfolio optimization and Monte Carlo simulations
- APIs for collecting financial data
Consider it if: You want to develop programming and data analysis skills that can support quantitative, analytical, or data-driven finance work.
Resume Tip: List the completed CFA Institute Python Programming Fundamentals Practical Skills Module under professional development or technical training.
How to Choose Your CFA PSM Step by Step
Not sure which CFA PSM you should choose? Start with what you want to get out of it. Your career direction, current skill set, and the skills you want to develop can help narrow your options.
Consider What You Want to Learn
Think about which skills would add the most value to your current knowledge. Your PSM can help you strengthen an area you already use or introduce you to a skill you haven't developed yet. Consider your gaps, interests, and skills that could help you advance in your finance career.
Look at the Skills You Already Have
Your starting point matters. If Excel and financial statements are already familiar territory, Python may help you add a new technical skill. If coding is completely new to you, but financial modeling is directly relevant to your goals, the Financial Modeling PSM may offer more immediate value.
Think About the Skills You'll Actually Use
Choose a CFA PSM based on how you expect to apply the skills in your career. Consider whether financial modeling and forecasting or programming and financial data analysis will be more relevant to the work you want to pursue.
