A new report from the U.S. Consumer Financial Protection Bureau (CFPB) finds that the U.S. financial industry spends an estimated US$54 per person on advertising each year, compared with the US$2 that’s spent on financial education.
The CFPB says that financial services companies spend about US$17 billion each year on marketing, which represents about US$54 a person per year; and that doesn’t count marketing of retirement products, college loans, and investment products.
At the same time, various levels of government, firms, and other organizations spend an estimated US$670 million on financial education, which is about US$2 per person per year.
The report says that, while the estimates should not be treated as precise measures, they give an overall indication of the relative amounts spent on financial education versus the marketing of certain types of financial products. “We hope the study encourages further research and stimulates discussion on the scope and role of financial education,” it says.
The CFPB also notes that the disparity heightens the importance of providing high-quality sources of unbiased financial information, including school-based financial education.
“This study suggests that financial educators should further enhance efforts to identify and promote innovative, scalable methods for providing financial education to consumers,” it says in the report. “Collectively, we need to make financial education resources as effective and innovative as possible in order to maximize our impact in helping American consumers make good financial decisions for themselves and their families.”