CFPB: Financial education outspent by marketing

CFPB report released Monday says $25 is spent on financial marketing for every $1 spent on financial education for consumers and uses that comparison to point to the need for more focus on the latter.

“When consumers receive the vast majority of their financial information from companies that are trying to promote an image or sell products, consumers have very little unbiased information,” said CFPB Director Richard Cordray in a press statement upon release of the report. “Today’s study further reinforces the dire need for more and better financial education in this country.”

The research and analysis were conducted by the Boston Consulting Group under contract with CFPB. According to the report, the financial services industry spends about $17 billion each year marketing financial products and services to consumers. By contrast, about $670 million is spent annually on consumer financial education.

NAFCU has pointed out to the CFPB repeatedly that credit unions are at the forefront of providing financial education to their members and communities. The association has encouraged the bureau to initiate activities and programs that help consumers gain an understanding of core financial concepts.

The study took a one-year snapshot of financial education spending in the U.S. evaluating six major sectors that contribute, including:

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