25 Times More Spent on Marketing Financial Products than on Financial Education

25 Times More Spent on Marketing Financial Products than on Financial Education

November 26, 2013         Written By Bill Hardekopf

The Consumer Federal Protection Bureau released a report indicating that the United States spends 25 times more money each year on marketing financial products than on financial education.

The study, called “Navigating the Market: A comparison of spending on financial education and financial marketing,” shows that approximately $670 million a year is spent on providing financial education through government offices, financial institutions, nonprofit organizations and charitable foundations. By comparison, the country spends around $17 billion marketing consumer financial products. This does not even include products related to college loans, retirement and other investments.

The CFPB put matters further into perspective. Based on that data, an average of $2 is spent each year on financial education for each American, versus $54 a year on financial services marketing. This could help explain some of the poor money management practices in many parts of the country.

What can you do to change this? Find a way to support financial education. Of the $670 million spent on financial education, $472 million came from nonprofit organizations. Show your support for these organizations. State governments only accounted for $7 million of those total expenditures. Reach out to your local representatives, asking them to make a difference in this area.

It only takes a few voices to get people’s attention about the need for financial education. Hopefully, a much-needed change is on the horizon.



The information contained within this article was accurate as of November 26, 2013. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


bill-hardekopf

About Bill Hardekopf

Bill Hardekopf is the CEO of LowCards.com and covers the credit card industry from all perspectives. Bill has been involved with personal finance for over 15 years. He is a frequent contributor to Forbes, The Street and The Christian Science Monitor.
View all posts by Bill Hardekopf
Featured Limited/No Credit
Top Features : No annual fee; reports to major credit bureaus; access to higher credit line after making first 5 monthly payments on time
Featured Fair Credit Card
Top Features : No annual fee; access to higher credit line after making first 5 monthly payments on time
Featured Low Interest Card
Top Features : 1.25X miles on every purchase; no annual fee; bonus of 20,000 miles once $1,000 is spent in first 3 months
Featured Cash Back Card
Top Features : 1.5% cash back on all purchases; $150 bonus after spending $500 in first 3 months
Featured No Annual Fee Card
Top Features : Earn cash back TWICE. 1% when you buy plus 1% as you pay; 0% APR for 18 months on balance transfers
Featured Bad Credit Card
Top Features : Perfect credit not required; Reports to major credit bureaus