"Financial literacy needs to be a part of every architect's training"

Training architects about the business side of designing buildings would have major benefits for the profession, writes Erin Agdinaoay.

In architecture there's an unspoken rule: focus on the work, not the money. That is why, in the early years of my career, I focused purely on design. I wasn't taught business administration in school; design was the business, and good design was good business.

I didn't know the fees of the projects I was working on, how projects were budgeted or how financial success was even measured, and I didn't think I was supposed to know. Then, one day, I overheard a project manager telling a colleague how over-budget a certain project was. It made me wonder: could I be a problem on a project without even knowing it?

There seems to be a belief that financial concerns may curtail creativity

That sparked my curiosity to better understand the financial framework of my work. What I ended up learning changed my career trajectory and led me to the belief that financial literacy needs to be a part of every architect's training.

This insight is not unique to architecture; it's a challenge that creative industries face broadly. Many fields driven by passion often fail to teach young professionals about the practicalities of running a successful business.

There seems to be a belief that financial concerns may curtail creativity. Yet, I found that rather than cramping my creativity, financial literacy helped me become a better designer.

I had to learn about the business side of architecture on the job. School had taught me about design principles, building codes and materials — but not about budgets, project fees or managing profitability.

I was not able to see behind the curtain at the large architecture firm where I started my career, so I started asking questions. Every time I was assigned a new task, I would ask how long it should take, how much we were charging for that time and what the broader project goals were. I asked to see fee proposals and inquired about our project's budget versus the actual cost.

I began to understand that I needed to balance my creativity with real-world constraints. This thinking shifted my career path. I started thinking that a small firm might provide me with a better understanding of how projects ran from start to finish – including financials.

Learning the business side of architecture has been transformative for me

Soon after, I joined a smaller, collaborative firm that is part of a larger shift in the industry. Like other forward-looking firms, it is focused on educating junior staff about project costs and budgets. From day one, I was invited to review proposals, give input on project budgets, and attend company-wide meetings where we discussed everything from profit margins to future business goals.

It took about a year of regular exposure to budgets, proposals and financial reports for me to feel comfortable with the range and magnitude of costs and numbers in the business of architecture. By the end of my second year, I was confident enough to contribute meaningfully to discussions about pricing and profitability. I learned how the financials tied into our ability to deliver great designs — and to do so sustainably.

Understanding the business side helped me feel more in control and, as a result, shifted my mood at work. It was uplifting. I had clarity around the metrics for success and it felt good to understand my part in the business. I was able to more effectively prioritize tasks and become more strategic about how I spent my time.

Last year, I was promoted to associate principal at my firm, just four-and-a-half years after starting there. I can say with confidence that this would not have happened if I didn't have a firm handle on the financials.

Learning the business side of architecture has been transformative for me, and I believe it holds immense value for others in the field. For young architects, understanding financials provides clarity and direction. It helps reduce frustration by showing why certain decisions are made and how your work contributes to the firm's success.

For firms, encouraging business literacy can lead to greater retention and engagement. Transparency fosters a sense of ownership and when junior employees understand the financial aspects of their work, they feel more valued and are more likely to stay.

Financial literacy equips us to advocate for fairer fees, more sustainable workloads and a profession that can thrive without sacrificing people or quality

But the need for financial literacy goes beyond individual firms. Architecture as a profession has long struggled to sustain itself financially. Many practices still operate with razor-thin margins, leading to salaries that lag behind comparable fields and forcing firms to take on more work than they can responsibly handle.

This can result in burnout, talent loss, and even compromised project quality. Financial literacy at scale could help reverse these trends, strengthening not only individual careers but the resilience of the profession as a whole.

Knowledge is power. When architects understand how larger economic forces affect our industry, we can question long-standing practices, resist the race to the bottom and envision healthier business models.

We can treat business like design – iterative, creative, and open to improvement – and use financial fluency to better communicate our value to clients, collaborators and communities. At its best, financial literacy equips us to advocate for fairer fees, more sustainable workloads and a profession that can thrive without sacrificing people or quality.

My experience has taught me that the business side of architecture isn't something to fear, it's something to embrace. The knowledge I gained has given me confidence, improved my work and helped me grow into roles that I once felt unprepared for.

If we want the architecture profession to be sustainable for practitioners, for firms and for society, we need to normalize financial and business literacy as part of architectural training.

Erin Agdinaoay is an associate principal and architect at Work Program Architects.

The photo is by Igor Omilaev via Unsplash.

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