CFPB Finds Financial Education Programs are Significantly Outspent by Financial Marketing

by Sabrina I. Pacifici on November 18, 2013

“Today, the Consumer Financial Protection Bureau published a report analyzing the amount of money spent on providing financial education to consumers and the amount spent trying to influence consumers’ decisions about financial products. The report found that for every dollar put towards financial education, $25 is spent on financial marketing, which can make it difficult for consumers to find objective information…The study is a yearlong snapshot of spending on financial education in the United States. The Bureau’s report found that the financial services industry spends approximately $17 billion each year marketing financial products and services to consumers. Meanwhile, approximately $670 million is spent annually to provide financial education to consumers. Those numbers mean that each year, financial institutions spend about $54 per person on financial marketing, while only $2 is spent educating them. Those numbers highlight the need for consumers to be able to access unbiased information about financial products and services.”

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