CFPB Report Claims Financial Education Efforts Insufficient

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On November 18, the CFPB published a report that examines the amount of money spent by financial institutions to inform and influence consumers’ decisions about financial products and services. The study analyzed spending over a one year period and found that financial institutions spend 25 times more money marketing financial products and services to consumers than on educating consumers about them, which the CFPB asserts highlights the need to improve consumers’ access to objective information. The report relays detailed findings about financial education spending across six major sectors and about annual spending on awareness advertising and direct marketing of financial products and services.