NOVEMBER 18, 2013

A comparison of spending on financial education and 

financial marketing

Navigating the Market
2 CONSUMER FINANCIAL PROTECTION BUREAU

Table of contents

Executive summary.....................................................................................................3

1. Background...........................................................................................................4

2. Scope of the study................................................................................................5

3. Findings.................................................................................................................8

3.1 Annual financial education spending.......................................................8

3.2 Financial services industry marketing spending ....................................17

4. Conclusion ..........................................................................................................24

Appendix A: SUMMARY OF METHODOLOGY ....................................................25
3 CONSUMER FINANCIAL PROTECTION BUREAU

Executive summary 

The Consumer Financial Protection Bureau (the CFPB) looked at the information 

sources consumers are exposed to when they make financial decisions. Empowering 

consumers to make the financial decisions that will help them meet their own life goals is a 

critical part of the mission of the CFPB. To understand the wide range of information sources 

consumers could be exposed to in making financial decisions, the CFPB commissioned a study 

of the size and scope of the financial information field.* The results give an overall indication of 

the relative amounts spent in the U.S. on financial education and on the marketing of certain 

types of financial products. Though the results should not be treated as precise measures of 

spending, we hope the study encourages further research and stimulates discussion on the scope 

and role of financial education. 

In the U.S. economy, billions of dollars are spent on financial industry marketing 

efforts, about 25 times more than is spent on financial education. The study found 

that approximately $670 million is spent annually on providing financial education by federal, 

state, and local governments, financial institutions, nonprofit organizations, charitable 

foundations, and others. At the same time, the financial services industry spends approximately 

$17 billion annually marketing consumer financial products and services (not counting 

marketing of products related to retirement, college loans, and other investments). While the 

study does not explore the effect of this spending disparity on consumer decisions, it provides a 

meaningful comparison when we consider consumers’ financial educational needs.

As a nation, we spend about two dollars per person per year on financial 

education. The $670 million in spending translates to a little more than $2 per person per 

year on financial education in the U.S. (Note that this figure should be treated as a general order 

of magnitude of spending rather than a precise estimate, as this number is derived from a 

modeling methodology with specific assumptions detailed below). In comparison, the $17 

billion in financial services marketing translates to about $54 per person per year. 

* The research and analysis described in this report was conducted by the Boston Consulting Group 

under contract with the Consumer Financial Protection Bureau.
4 CONSUMER FINANCIAL PROTECTION BUREAU

1. Background

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 established the 

Consumer Financial Protection Bureau (the CFPB) to regulate the offering and provision of 

consumer financial products or services under federal consumer financial laws. The Act also 

established the Office of Financial Education within the CFPB, which is responsible for 

developing and implementing initiatives intended to educate and empower consumers to make 

better informed financial decisions. 

The Office of Financial Education works to promote effective and high-quality financial 

education for American consumers. To do this, it is helpful to understand the size and scope of 

today’s financial information marketplace in order to calibrate financial education efforts in the 

context of the broad array of financial information consumers receive.

Financial information comes to the U.S. public from many sources, including nonprofit 

organizations, financial institutions, governmental agencies, and others. Before this study, we 

had limited data about the scope and scale of the efforts put forth through these sources, 

especially the total dollar amount spent to reach consumers. 

Beyond just the amount of information received, an important consideration from the 

consumer’s perspective is the information’s purpose. Some information is intended to educate 

consumers, and some is intended to drive a purchase decision. To better understand the 

influences on consumer behavior, we examined and compared these information sources.
5 CONSUMER FINANCIAL PROTECTION BUREAU

2. Scope of the study 

We have investigated the size and scope of financial information provided to consumers in the 

United States by estimating how much is spent on providing financial information. We divided 

financial information into two categories: financial education and financial services marketing.

We defined financial education for the purposes of this study as follows:

Financial Education represents a process of lifelong knowledge and skills development 

required to achieve financial literacy, learn to mitigate financial risks, protect assets and 

ensure on-going effective management of one's savings, credit, debt, housing and other 

resources to maximize financial well-being of individuals and society. 

We took a one-year snapshot of spending in the United States on financial education. We 

included services such as housing counseling, credit counseling, school-based financial 

education, financial counseling and coaching, and community-based financial education. 

We excluded spending related to investments, insurance, retirement assets and planning, and 

college loans, aid, and planning. We also excluded financial education that is directly paid for by 

the consumer, such as money spent on fee-based financial planning, fee-based credit counseling, 

and books on financial topics. And, we excluded fixed costs, such as the salaries of 

schoolteachers who provide financial education as part of the courses that they teach. 

In addition, the study separated out spending that directly supports the provision of financial 

education to consumers from spending that supports the financial education field. Direct 

provision of financial education includes costs associated with services that directly serve 

consumers, such classes and workshops, one-on-one coaching and counseling, informational 

website and brochures for consumers, and the like. Supporting services include services such as 

funding to other organizations (including those that directly provide financial education), 

technical assistance, training, research and evaluation services, conferences, etc., that help 

financial education service providers do their work. The delineation between these two types of 

financial education services is not always completely crisp, and in some cases these services 

cannot be easily separated in practice. For example, it is sometimes not possible to get data that 
6 CONSUMER FINANCIAL PROTECTION BUREAU

separates the cost of developing a financial education curriculum from the cost of using it with 

consumers. As such, the estimates documented here are necessarily imprecise, but we think it is 

a useful analytic framework to distinguish between direct service and supporting services. 

In this analysis, we focused primarily on estimating the spending on direct provision of financial 

education. We do not provide a detailed estimate of the total amount of spending on support 

services or a total estimate of direct services and support services together, in part due to the 

difficulty of getting an estimate that accurately separates out funding from other types of 

supporting services. If funding is not separated out, it will be double-counted in both direct and 

supporting services, leading to an erroneous estimate. 

However, the limited focus in this report on supporting services does not imply that these 

services are unimportant. Both of these types of activities – the direct provision of financial 

education to consumers and the funding, technical assistance, training, research and evaluation, 

conferences, etc., that help financial education service providers do their work – are crucial 

components of effectively assisting consumers manage their financial lives.

First, the study looked at providers and funders of financial education, including:

 Federal government

 State governments 

 Local governments

 School districts

 Nonprofit organizations 

 Financial institutions

 Private philanthropies

Because comprehensive data sources on financial education do not currently exist, we estimated 

the amount each of these sources spent on financial education by using a methodology that 

included interviews with experts, public data, 990 tax form data, and other sources to create 

models to estimate spending by sector. (See the Appendix for a full description of the 

methodology). Because this is an estimate based on a modeling methodology, the findings 

should be treated as a general order of magnitude of spending rather than as a precise number.

Next, the study estimated the amount spent by the financial services industry on marketing 

products and services to consumers. The team further analyzed spending by channel (for 

example, television, radio, and newspapers) and product type (for example, credit cards). As
7 CONSUMER FINANCIAL PROTECTION BUREAU

with the financial education estimate, the marketing analysis excluded spending related to 

investments, insurance, retirement assets and planning, and college loans, aid, and planning. 

We found it was relatively straightforward to analyze spending on marketing, since the industry 

has established standard measurement techniques. We examined awareness advertising and 

direct marketing. Awareness advertising tends to reach audiences through traditional channels, 

such as television, radio and newspapers, while direct marketing spend includes such efforts as 

Internet advertising, direct mail, and other methods aimed at prompting individuals to make an 

immediate purchase or at generating leads. The total of these two types gives us an estimate of 

the overall dollar amount spent by financial institutions on promoting consumer financial 

products. 

Note that the spending estimates across all sectors are not drawn from the same calendar year, 

due to limitations in data sources. For example, the federal government spending data is 2010 

data, drawn from a U.S. General Accounting Office report that gathered data from 2010. The 

nonprofit data is primarily from tax year 2011, as that is the most recent data available from the 

Internal Revenue Service. The financial services marketing data is primarily 2012 data. Data 

from other sectors are drawn from a range of several years, in all cases using the most recent 

data available. Because the data by sector is not all from the same year, caution should be used 

in comparing the annual spending sources presented below.
8 CONSUMER FINANCIAL PROTECTION BUREAU

3. Findings

3.1 Annual financial education spending

Using the methodology discussed above and further detailed in the appendix, we found that 

annual spending on direct provision of financial education in the U.S. totaled 

approximately $670 million. This number provides a sense of the order of magnitude of 

financial education spending in the United States, not a precise measure.

There are many thousands of individual providers of financial education, and there is currently 

no straightforward way to uncover and aggregate their budgets and spending. Therefore, as part 

of the study, we developed assumptions and a model to estimate the total spending from the 

nation’s many financial education providers. (See the Appendix for a full description of the 

methodology). We hope that further investigation and discussion can refine the estimate and 

provide a deeper understanding of financial education spending.

Spending on financial education comes from multiple sources, as detailed below.

FEDERAL GOVERNMENT

The federal government spends approximately $230 million on financial 

education; of this total, approximately $130 million is spent on direct provision of 

financial education. The remaining $100 million is spent on supporting services around 

financial education, including services such as grants and contracts to other organizations 

(including those that directly provide financial education), technical assistance, training, and 

research.
9 CONSUMER FINANCIAL PROTECTION BUREAU

To estimate the federal government's contribution to the overall financial education market in 

the United States, we relied on a 2012 U.S. General Accounting Office (GAO)1 report that 

provided spending estimates for the majority of federal agencies with presence in this area of 

work. To preserve data consistency and comparability of baseline results, we utilized the 2012 

GAO Report spending levels, with two key caveats:

 The 2012 GAO Report relied on FY 2010 data; thus, the numbers reported do not reflect 

changes in agency spending since then.

 The Report provided estimates based on assessments by federal agency staff, which were 

not always consistent across different agencies. For examples, agencies took different 

approaches as to whether staff time, costs of contracts, printing, etc. were included.

In addition to 2012 GAO Report estimates, we added the CFPB contribution to financial 

education of approximately $26 million based on the FY2013 budget. (As the CFPB was not in 

existence in 2010, we could not use a 2010 figure to be comparable to the GAO numbers).

We estimated the breakdown of federal spending into direct service and supporting services 

categories by examining publically available program descriptions and interviews with agency

staff.

Our research found that the federal spending on financial education is heavily concentrated on 

housing-related services, such as housing counseling and foreclosure mitigation. Some of the 

federal housing-related support included in the estimate is time-limited in nature; for example, 

the National Foreclosure Mitigation Counseling Program is a time-limited program. 

 1 GAO, Report to Congressional Committees on Financial Literacy – Overlap of Programs Suggests There May Be 

Opportunities for Consolidation. GAO-12-588 (Washingt0n, DC: Jul. 23, 2012). Note that in its April 2013 report 

on duplication of federal programs, GAO did not include financial literacy. The report noted that its overall 

assessment of the two financial literacy areas is that they have been “addressed, meaning all actions needed in that 

area were addressed.” GAO, 2013 Annual Report: Actions Needed to Reduce Fragmentation, Overlap, and 

Duplication and Achieve Other Financial Benefits. GAO-13-279SP (Washington, DC: April 2013).
10 CONSUMER FINANCIAL PROTECTION BUREAU

STATE GOVERNMENT

State governments spend approximately $67 million on financial education. Of 

this total, approximately $7 million is spent on direct provision of financial 

education. The remaining $60 million is spent on supporting services around financial 

education, including services such as funding to other organizations (including those that 

directly provide financial education), technical assistance, training, and research.

We conducted analysis to identify spending on financial education in all 50 states as well as the 

District of Columbia. For each state, a database-driven search of recent news reports was 

supplemented with more detailed research on state budgets and legislative updates. A state-bystate analysis was also completed to understand how each state is allocating its award from the 

National Mortgage Settlement. In addition, we supplemented this data through interviews with 

a small group of state and city government officials. Based on interviews and expert input, we 

considered 90 percent of state spending as supporting services (e.g., grants, training, etc.). 

A significant portion of state spending is derived from the National Mortgage Settlement funds 

that many states have been using for housing-related financial education, including housing 

counseling and foreclosure mitigation counseling. For the purposes of this study, the funding 

was assumed to be spread over a five-year period, as interviews and expert input suggested that 

many states would be spending these funds over this length of time. Thus, one-fifth of states’ 

spending on financial education from this source was considered the annual spending. As these 

resources represent a one-time source of funding, states’ funding of financial education after 

this five-year investment may be significantly lower.

MUNICIPAL AND SCHOOL DISTRICT FUNDING

Municipal governments and school districts together spend approximately $46 

million on financial education. Of this total, approximately $31 million is spent on 

direct provision of financial education. The remaining $19 million is spent on supporting 

services around financial education, such as funding to other organizations (including those that 

directly provide financial education), technical assistance, training, and research.

Municipal government

To assess local government investments in financial education, we conducted interviews with 

representatives of city governments across the country. Findings from these interviews 
11 CONSUMER FINANCIAL PROTECTION BUREAU

suggested notable disparities in levels of attention and resources devoted to financial education 

among cities.

New York City provided an example of a high level of local government support for financial 

education supported by a stable funding stream through a dedicated levy, raising approximately 

$2,500,000 per year for the city of 8.2 million inhabitants. However, even at this level of 

funding, per capita local government expenses for financial education amount to approximately 

thirty cents per person annually. 

Our analysis suggested that New York City level of expenditures represents the upper bound for 

local government support provided to financial education. If New York's funding level of 

approximately thirty cents is extrapolated to the United States population of 313 million, total 

local government funding available across the country could reach as high as $94 million. 

To estimate the lower bound of local government resources devoted to financial education, we 

assumed that every township/town, municipality and county invests $1,000 per year. With 

38,917 local government entities across the country, this assumption yielded the nation-wide 

lower bound local government spending for financial education of $39 million. 

Overall, we estimate that local government funding for financial education amounts to $39-94 

million per year. We have opted to use the lower boundary for our overall municipal estimate, 

as our analysis suggests that New York City is an outlier in providing significant spending on 

financial education because of its dedicated levy, and spending levels across other cities appears 

to be much lower.

Using this lower boundary, based on expert interviews, we estimated that $31 million of the $39 

million was used for direct provision of financial education by local governments.

School districts

To assess additional funding available for financial education and provided through individual 

school districts, we conducted a series of interviews with secondary school education 

professionals representing school systems, academia, city governments and the non-profit 

community. The interviews aimed to identify a range of funding levels, with the following 

caveats:

 Teachers' salaries and other personnel expenses are out-of-scope.
12 CONSUMER FINANCIAL PROTECTION BUREAU

 The study does not account for portions of textbooks and other materials that may 

contain financial education components (e.g. economics textbooks containing financial 

education concepts).

Thus, we are estimating spending on school-based financial education beyond the important 

efforts teachers may be making in a classroom setting in many places.

In general, the interviews revealed that only minimal funding, beyond funds spent on teacher 

salaries or textbooks that include financial education, is available for financial education at the 

school district level. Interviews also revealed that some financial education in schools is 

provided or enabled by nonprofit organizations, financial institution staff, or others. As this is 

not paid for by the school districts, those efforts are not captured in this section but appear in 

the relevant spending estimates for other sectors.

However, we identified examples of financial education funding at the school district level that 

supported professional development opportunities around financial education for teachers. 

Typically this entails covering travel, registration fees, stipends, substitute teacher expenses and 

other related items to support teachers attending financial education training. Based on what 

we heard in interviews, we made several assumptions to estimate the amount of these financial 

education expenses available through school districts:

 The average financial education teacher training costs about $500/teacher.

 The average school district sends 1-3 teachers to these trainings per district/year.

 Thus, the average spending on financial education teacher training amounts to $500-

1,500 per district/year. All of this spending is considered to be supporting services.

Based on 2012 Digest of Education Statistics, there are currently 13,588 school districts across 

the United States. With $500-1,500 invested in financial education teacher training by every 

district, the total financial education spending by school districts amounts to $7-21 million per 

year. 

FINANCIAL INSTITUTIONS 

Financial institutions spend approximately $160 million on financial education. 

Of this total, approximately $31 million is spent on direct provision of financial 

education. The remaining $129 million is spent on supporting services around financial 

education, such as funding to other organizations (including those that directly provide financial 

education), technical assistance, training, and research.
13 CONSUMER FINANCIAL PROTECTION BUREAU

Financial institutions, typically through their charitable foundations, contribute funding to 

other organizations that directly provide financial education to consumers. In addition, many 

financial institutions provide some financial education directly; for example, their staff may 

participate in community financial education sessions, or they may create financial education 

materials for consumers. While we did not count the monetary value of in-kind staff time, we 

did include other costs associated with such efforts, such as tools and materials used by staff in 

directly providing financial education.

To estimate spending on financial education by financial institutions, we gathered information 

via interviews with representative firms and supplemented this with data gathered from publicly 

available sources. We then extrapolated from the spending by representative firms to estimate 

spending for the broader sector. Specific steps included the following:

 We interviewed banks among the top 15 largest in the U.S. and captured specific 

information on the expenditures and reach of their financial education initiatives.

 We reviewed press coverage, annual reports, and Corporate Social Responsibility reports 

for financial education-related initiatives of other financial institutions including banks, 

audit and advisory firms, and credit card companies.

 Based on these sources, we isolated actual spending on financial education from other 

contributions such as labor hours and in-kind donations.

 We estimated bank spending on financial education based on the known investments of 

eight of the top 15 banks using the proportion of their assets to the total assets in the U.S. 

banking sector as a basis for extrapolation.

 We estimated financial education spending in the audit/advisory sector based on known 

commitments from the Big 4 audit/advisory firms using their share of overall U.S. 

market to extrapolate.

 We captured spending of large credit card companies without having to engage in 

extrapolation.

 From data gathered in interviews, we estimated that 20% of financial institution 

spending on financial education is allocated to direct provision of services with the 

remaining 80% allocated to supporting services. 
14 CONSUMER FINANCIAL PROTECTION BUREAU

PRIVATE PHILANTHROPIES

Philanthropic giving related to financial education exceeds $40 million. All of this 

funding falls into the category of supporting services for financial education, as opposed to 

direct provision of services. 

Private philanthropic foundations contribute to the cause of financial education over and above 

resources provided by foundations linked to banks and other financial institutions. To develop 

an estimate of private foundation giving to financial education, we reviewed 2012 grant-making 

data for all foundations included in the list of the top 50 largest foundations by size of their asset 

base. Our review of 2012 data at the level of individual grants and associated descriptions of 

purpose and intent enabled the team to suggest that the top 50 foundations provide at least $40 

million of contributions to financial education. Funding levels are likely higher if private 

foundations outside of the top 50 are taken into account. 

Note that philanthropic giving is considered supportive services; thus, this estimate is not 

included in the overall direct spending estimate above. The philanthropic funding that 

supports direct provision of financial education by non-profit organizations is captured in the 

spending estimates for non-profit organizations (see below).

NON-PROFIT ORGANIZATIONS

Non-profit organizations spend approximately $550 million on financial 

education; of this total, approximately $472 million is spent on direct provision of 

financial education. The remaining $78 million is spent on supporting services around 

financial education, such as grants, training, research, and other services.

Our analysis of non-profit organizations included the following four categories:

 National/state-level non-profit organizations

 Industry/trade associations and coalitions

 Community-based groups and clubs

 Faith-based organizations

To analyze financial education spending by all four categories of non-profit organizations, we 

conducted a top-down assessment of financial education spending, created a comprehensive 

database of non-profit spending data, and classified each non-profit organization along several 

dimensions. We created assumptions for each classification and applied them to the database in 
15 CONSUMER FINANCIAL PROTECTION BUREAU

order to estimate total non-profit spending on financial education as well as breakdowns for 

direct service provision vs. supporting functions. Specific steps included the following:

 We identified an initial list of approximately 30 leading non-profit organizations in the 

financial education field based on CFPB staff knowledge and contacts. 

 We searched a database of Form 990 tax filings using National Taxonomy of Exempt 

Entities (NTEE) codes applicable to financial education, and also using selected key 

words. (A list of these NTEE codes and key words can be found in the Appendix). Most 

of this data is from tax year 2011, although in some cases tax data is from a previous 

year.

 By combining the list of approximately 30 key organizations with the list generated by 

the 990 tax filing search, we created a list of approximately 1,200 entities with over $30 

billion in combined annual expenses. This list included both large and small non-profit 

organizations. 

 Based on information gathered via interviews with CFPB and other organizations, we 

reviewed the full list to remove out-of-scope organizations. We also combined 

organizational families and national associations into a single parent entity.

 We then categorized non-profits on this list into organization types

 National or State Level

 Trade Associations & Coalitions

 Community-Based

 Faith-Based

 We then classified each organization based on mission focus on financial education and 

created assumptions for each category to determine the estimated portion of total 

spending allocated to financial education. (More details on this process are included in 

the full methodology included as an Appendix).

 We used a modified classification scheme for credit counseling organizations. Since a 

significant proportion of the budgets of some of these organizations are raised through 

client fees, and self-funded financial education is out of scope for this study, we removed 

from the list the credit counseling agencies that receive almost all of their revenue from 

fees. For credit counseling agencies that also provide other types of free financial 

education services, we estimated, based on interviews and other data sources, that 15% 

of their overall budgets were not generated by client fees.
16 CONSUMER FINANCIAL PROTECTION BUREAU

 Combining all of the above data into one model, we estimate that the collective annual 

spending on financial education by nonprofit organizations is approximately $550 

million. 

 We reviewed the full list of entities on an organization-by-organization basis to 

determine distributions of spending by service type (i.e., direct versus supporting 

services).

SUMMARY OF FINANCIAL EDCUATION SPENDING

We then summed up the spending on direct provision of financial education by all of these 

sectors – federal government, state government, municipal government, school districts, 

nonprofits, and financial institutions. (Private philanthropies and school districts were not 

included as all of their spending is considered supporting services). 

Thus, we find that the total annual spending on direct provision of financial 

education is approximately $670 million. Of this total, approximately three-quarters of 

the total spending comes from private sources, and the remaining one-quarter comes from all 

public sources combined. 

FIGURE 1: DIRECT ANNUAL FINANCIAL EDUCATION SPENDING BY ALL SOURCES

130

7 31 31

472

670

0

100

200

300

400

500

600

700

800

Millions of $
17 CONSUMER FINANCIAL PROTECTION BUREAU

Note that the total spending across all sectors cannot be added to get an accurate total of both 

direct service and supporting services for financial education. The supporting service 

component of this analysis includes funding that is given to other organizations, and that 

spending may then also be captured in the direct service budgets for those organizations, or in 

the supporting services provided by those organizations. Thus, summing the overall direct 

provision spending and the support service spending would contain a very significant amount of 

double counting. Removing double-counting from the supporting services spending category 

would require significant additional analysis that is beyond the scope of this study.

Looking at annual spending on financial education on a per capita basis, the nation spends just 

above two dollars per person per year on financial education from both public and 

private sources (based on our $670 million estimate of annual spending and the current U.S. 

population of approximately 314 million people).2

3.2 Financial services industry marketing 

spending

We then turned to the spending by financial service providers to market their products. This 

marketing constitutes another source of information that consumers are exposed to when 

making financial decisions. We found that the total amount spent annually by financial 

institutions and other financial service providers on consumer financial products 

and services, including both awareness advertising and direct marketing, is 

approximately $17 billion. 

 2 We augmented the estimates with a detailed study of the financial education infrastructure in two cities, Baltimore 

and New York City. We selected these cities as they represent examples of cities that have strong financial education 

providers and services. Looking at the budgets of the major providers of financial education (funded by a 

combination of all the sectors listed above, including funds from multiple levels of government, financial institutions, 

etc.), we found that spending on financial education in these cities was between $1 and $2.40 per person per year.

The additional detail from the city level provides validation of the national total, as the order of magnitude of financial 

education spending at the city level ($1 to $2.40) is in the same range as the national estimate of financial education 

spending (just above $2).
18 CONSUMER FINANCIAL PROTECTION BUREAU

The marketing spending analysis followed the same scope guidelines used for the financial 

education spending analysis above (i.e., spending related to investments, insurance, retirement 

assets and planning, and college loans, aid, and planning were excluded). 

We obtained comprehensive data and developed robust assumptions covering the full scope of 

the analysis for a single year (2012). All channel-specific and product-specific findings pertain 

to the full calendar year 2012.

Using methods detailed below and in the Appendix, we developed an estimate of the dollar 

amount spent by the financial services industry on marketing consumer financial products. We 

further analyzed the marketing spending and delineated spending by channel (e.g., TV, radio, 

newspapers) and product type (e.g., credit cards). 

We segmented the analysis into general awareness advertising spending and direct marketing 

spending. Awareness advertising tends to reach audiences through traditional channels, such as 

television, radio and newspapers, while direct marketing includes such channels as Internet 

display advertising, direct mail and other methods aimed at prompting individuals to make an 

immediate purchase or generate a lead. 

AWARENESS ADVERTISING SPENDING

Financial services providers spend approximately $5.5 billion on awareness 

advertising annually. Based on the methodology detailed below and in the Appendix, we 

found that the financial service providers spent approximately $5.5 billion on awareness 

advertising per year (based on a one-year sample). Awareness advertising includes delivering 

general promotional messages not intended for immediate sales of products, through channels 

such as television, radio, newspapers, and the like.

We found that awareness advertising spending on financial products and services broke down 

by media type in the following way:

 50% of the $5.5 billion was spent on television advertising

 16% was spent on newspaper advertising

 15% was spent on display ads

 9% was spent on radio ads

 5% was spent on magazine ads

 5% was spent on outdoor ads (for example, billboards) 
19 CONSUMER FINANCIAL PROTECTION BUREAU

FIGURE 2: ANNUAL AWARENESS ADVERSTISING BY MEDIA TYPE

The awareness advertising can also be broken down by product type:

 56% of approximately $5.5 billion in awareness advertising was spent on credit- and 

loan-related products (including credit cards, mortgages, vehicle loans, and home 

equity loans)

 24% was spent on advertising related to banking services (including checking, 

savings, and general banking promotion) 

 19% was spent on advertising related to other services (including ATM networks, 

credit counseling, check cashing, and consumer financial promotions)

Television 

advertising 

50%

Newspaper 

advertising 

16%

Display 

ads 15%

Radio ads 9%

Magazine 

ads 5%

Outdoor 

ads 5%
20 CONSUMER FINANCIAL PROTECTION BUREAU

FIGURE 3: ANNUAL AWARENESS ADVERSTISING BY PRODUCT TYPE

FIGURE 4: COMPARISON OF ANNUAL AWARENESS ADVERTISING BY PRODUCT CATEGORY

More than 40% of the approximately $5.5 billion spent on awareness advertising is spent on 

marketing credit cards. When the marketing of other products such as mortgages and vehicle 

loans are added, more than half of awareness advertising spending is devoted to credit products, 

as opposed to other banking and financial services. 

To develop the estimates presented above, we took the following steps:

 We obtained granular campaign-specific data for awareness advertising campaigns 

conducted by financial institutions across the U.S. in 2012.

2.1

0.3

0.1 0.1

0.5

0.1 0.1

0.6 0.6 0.6

0.2

0.0

0.2

0.0

0.5

1.0

1.5

2.0

2.5

Other services

spending

Billions of $

Credit and loan 

related spending

Banking services

spending

3.1

1.4

0.1

5.5

0.0

1.0

2.0

3.0

4.0

5.0

6.0

Credit and loan

spending total

Banking

services total

Other services

total

Total of all

annual

awareness

advertising

Billions of $
21 CONSUMER FINANCIAL PROTECTION BUREAU

 We utilized data aggregated in an advertising spending database populated with 

individual advertising data points from 24/7 electronic monitoring, newspaper and 

magazine scans, billboard reporting, etc. 

 The database covers reporting by approximately 6,000 financial institutions and 

includes all reported ad efforts and campaigns.

 For purposes of the current study, the team extracted spending details for 

approximately 35,000 individual ad campaigns conducted in 2012.

 We removed business product spending items (e.g., corporate credit card ads), and spot 

checked and correlated with AdAge reporting for key financial institutions 

 We aggregated individual campaign entries for key general advertising channels: 

 TV

 Magazines

 Newspapers

 Radio

 Display

 Outdoor

 We developed full year 2012 total estimates for each channel and a grand total for all 

awareness advertising.

 We delineated awareness advertising data by product type (e.g., mortgage loans, vehicle 

loans, home equity loans, general banking services).

 We reviewed marketing expense patterns for 100 Top U.S. advertisers and financial 

institutions appearing on the Top 100 list and determined that awareness advertising 

accounts for 30-50% of the spending with the remaining portion captured through direct 

marketing expenses.

DIRECT MARKETING SPENDING

Financial service providers spend approximately $12 billion on direct marketing 

annually. Based on the methodology detailed below and in the Appendix, we found that the 

financial service providers spent approximately $12 billion on direct advertising per year (based 

on a one-year sample). Direct marketing includes such channels as Internet display advertising, 

direct mail and other methods aimed at prompting individuals to make an immediate purchase 

or generate a lead.
22 CONSUMER FINANCIAL PROTECTION BUREAU

We found that direct marketing spending on financial products and services broke down by 

media type in the following way:

 44 % of the approximately $12 billion in direct marketing was spent on internet 

display and search

 16% was spent on direct response television advertising

 22% was spent on direct mail

 5% was spent on direct response newspaper ads

 3% was spent on direct response magazine ads

 4% was spent on social networking

 2% was spent on direct response radio ads

 2% was spent on advertising emails

 2% was spent on other methods

FIGURE 5: DIRECT MARKETING SPENDING BY MEDIA TYPE

To develop the above estimates of U.S. financial institutions’ direct marketing expenses aimed at 

promoting consumer financial products, we took the following steps:

 We analyzed direct marketing data and reports from Direct Marketing Association, Inc., 

Kantar, Schonfeld and other sources to identify direct patterns and robust data capture 

mechanisms.

Internet display

and search 44%

Television 

ads 16%

Direct

mail 22%

Newspaper ads 

5%

Magazine ads 3%

Social 

networking 4%

Radio ads 2% Advertising 

emails 2% Other 2%
23 CONSUMER FINANCIAL PROTECTION BUREAU

 We confirmed the level of spending typical for financial institutions.

 We also used direct marketing spending data reported in The Power of Direct Marketing, 

2011-2012 Edition.

 We grouped data to capture spending on key direct marketing channels:

 Direct response components of TV, radio, newspapers and magazines

 Direct mail

 Internet display, search, social networking, commercial e-mail

 We applied spending proportions to break out direct marketing spend by channel for 

each product type (e.g., mortgages, vehicle loans, credit cards, home equity loans).

SUMMARY OF FINANCIAL SERVICES INDUSTRY MARKETING SPENDING 

By combining the assessments (detailed above) of the two marketing spending components –

about $5.5 billion in awareness advertising and $12 billion in direct marketing – we 

created an estimate of the overall dollar amount spent by financial institutions on promoting 

consumer financial products. We found that the total amount spent annually by financial 

institutions and other financial service providers is approximately $17 billion.

Looking at this spending on marketing on a per capita basis, financial services providers 

spend approximately $54 per person per year on marketing of consumer financial 

products and services (based on our $17 billion estimate of annual spending and the current 

U.S. population of approximately 314 million people). 
24 CONSUMER FINANCIAL PROTECTION BUREAU

4. Conclusion

Combined, financial institutions and financial educators provide a vast amount of information 

to the public. This means that for each decision in their financial lives, consumers are probably 

relying on varying sources of information, each developed with different purposes. This study 

found a disparity in spending levels on education and marketing—$670 million annually for 

financial education compared to $17 billion for financial services marketing. This finding 

indicates that more than 25 times as much is spent on marketing financial products and services 

to consumers each year than on providing them with financial education. (Note that these 

estimates do not include spending on financial education or financial service product marketing 

related to retirement, insurance, college loans, and other investments). 

The challenges facing consumers in managing their finances are significant, and the current 

spending on financial education is very low compared to the amounts spent on marketing 

financial products. This raises the importance of providing high-quality sources of unbiased 

financial information. This includes school-based financial education to prepare youth to be 

able to navigate their financial lives as adults. While many school districts have included 

financial education in the curriculum, and many teachers do extraordinary work in this area 

with limited resources, it is important to consider options to expand the opportunity for kids to 

build the skills that they will need throughout their lives for financial decision-making early and 

continuously during the K-12 years. 

The significant disparity in the magnitude of resources devoted to financial education as 

opposed to marketing of financial services also suggests the need for financial education and 

financial skill building opportunities to be provided to Americans in their homes, workplaces, 

libraries, and through community organizations where they may receive other types of services.

This study suggests that financial educators should further enhance efforts to identify and 

promote innovative, scalable methods for providing financial education to consumers. 

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.
25 CONSUMER FINANCIAL PROTECTION BUREAU

APPENDIX A: SUMMARY OF METHODOLOGY 

DEFINITION OF FINANCIAL EDUCATION 

In developing a definition of financial education for the purposes of this study, we relied on 

comparative analysis of existing definitions for "financial education", "financial literacy", and 

"financial capability". In particular, we reviewed definitions utilized by the President's Council 

on Financial Literacy, Financial Literacy Education Commission, Government Accountability 

Office, Organization for Economic Cooperation and Development, as well as other reputable 

entities. 

Upon review of several options, we agreed on the following language for purposes of the study:

Financial Education represents a process of lifelong knowledge and skills development 

required to achieve financial literacy, learn to mitigate financial risks, protect assets and 

ensure ongoing effective management of one's savings, credit, debt, housing and other 

resources to maximize financial well-being of individuals and society. 

To facilitate execution of the study, the team also agreed on an extensive list of definitions, 

inclusions and exclusions for financial education providers, service types, consumers and 

supporting organizations. The full listing of definitions is included at the end of this Appendix.

PURPOSE AND OBJECTIVES OF THE STUDY 

The study focused on helping the Consumer Financial Protection Bureau's (CFPB) Office of 

Financial Education (OFE) to increase understanding of the scope, scale, and funding of 

providers of financial education and the marketing dollars spent by providers of consumer 

financial products in the United States. (The research and analysis described in this report was 

conducted by the Boston Consulting Group under contract with the CFPB).

Design of the study included three task areas defined to achieve the following key objectives:

 Define, delineate and enumerate the types of financial education providers, services and 

supporting organizations across the United States

 Develop an estimate of the types, funding models, and funding dollar amounts 

supporting these providers and services

 Develop an estimate of the dollar amount spent by the financial services industry on 

marketing consumer financial products
26 CONSUMER FINANCIAL PROTECTION BUREAU

The study relied upon publicly available research, IRS Form 990 filings, studies and reports, as 

well as more than 40 interviews with federal and state government officials, non-profit

organizations, financial institutions, local governments, public schools, and other leading

experts in the field. 

The scope of the study encompassed:

 U.S. market only

 One-year market snapshot

 Financial education market size estimate by provider, type and service type (topics and 

selected targets) 

 Financial service industry marketing spend for consumer financial products by channel 

as feasible

We defined the following items to be out-of-scope for the current study: 

 Services related to securities trading (e.g., stocks and bonds), insurance, retirement 

assets and planning, and college loans, aid and planning 

 Financial education or consumer financial products demand

 Quality measures, consumer satisfaction metrics

 Sales efforts of financial institutions (e.g., call centers, retail sales efforts)

 Financial education strategy

 International efforts/collaboration

 Allocation of fixed costs (e.g., teachers' salaries), except for portions of salaries and fixed 

costs included in the GAO 2012 Report on Financial Literacy, where these expenses were 

included in numbers for federal agencies as available 

 No costs were estimated for general curriculum textbooks that may contain financial 

education components, chapters or exercises

 Services paid for by consumers (e.g., counseling fees)

FINANCIAL EDUCATION MARKET SIZING METHODOLOGY 

In line with the financial education definition, purpose and scope of the Study, we developed 

and aligned with CFPB on a detailed typology of financial education providers, service types, 

consumer types and supporting organizations (please see detailed definitions in this Appendix). 

Defined categories provided the foundation for the financial education market sizing estimate 

methodology – analysis of the dollar amounts dedicated to financial education by each provider 
27 CONSUMER FINANCIAL PROTECTION BUREAU

category overall and by service type (e.g., General Financial Education, Housing, Credit 

Counseling, and Microfinance). 

We started by focusing on the following key financial education provider/supporting 

organization categories:

 Federal government

 State governments

 Non-profit organizations 

 Financial institutions

 School districts

 Local governments

 Private philanthropies

For each category, the team determined whether entities within the category serve as financial 

education providers, supporting organizations or both. For example, federal government 

agencies fulfill both provider and supporting organization roles, while private philanthropies 

exclusively serve as supporting organizations. 

All categories of entities that provide financial education services exclusively or as a part of their 

operations underwent further analysis to delineate financial education services by type and 

determine proportions of funding dedicated to specific consumer types. 

Analytic techniques and methodology varied by entity category due to data availability, number 

of entities in each category and other factors. Below are details of analysis steps, assumptions 

and sources utilized to assess all key provider and supporting organization categories. 

FEDERAL GOVERNMENT 

To estimate the federal government's contribution to the overall financial education market in 

the United States, we relied on a 2012 U.S. General Accounting Office (GAO) report.3

 The GAO 

 3

 GAO, Report to Congressional Committees on Financial Literacy – Overlap of Programs Suggests There May Be 

Opportunities for Consolidation. GAO-12-588 (Washingt0n, DC: Jul. 23, 2012). Note that in its April 2013 report 

on duplication of federal programs, GAO did not include financial literacy. The report noted that its overall 

assessment of the two financial literacy areas is that they have been “addressed, meaning all actions needed in that 
28 CONSUMER FINANCIAL PROTECTION BUREAU

Report provided financial education spending estimates for the majority of federal agencies with 

presence in this area of work. 

To preserve data consistency and comparability of baseline results, we utilized the 2012 GAO 

Report spending levels, clearly defining two key caveats:

 The 2012 GAO Report relied on FY 2010 data.

 The 2012 GAO Report provided estimates based on staff assessments and portions of 

staff time, costs of contracts, printing, etc. were included, where available.

In addition to the 2012 GAO Report estimates, the team obtained and added the CFPB’s 

contribution to financial education based on the FY2013 budget for financial education of

approximately $26 million.

We also examined, but deemed to be out of scope contributions to financial education spending

provided by the following entities:

 U.S. Small Business Administration – financial education spending was fragmented 

across programs and delivered in partnerships with other government and non-profit 

entities; it was assumed to be captured in other programs included in the study.

 U.S. Commodity Futures Trading Commission – the primary focus is on investor 

education and fraud prevention, and thus out of scope for the study.

We estimated the breakdown of federal spending into direct service and supporting services 

categories by examining publically available program descriptions and interviews with agency 

staff. 

STATE GOVERNMENT

We conducted a thorough analysis to identify spending on financial education in all 50 states as 

well as the District of Columbia. For each state, a database-driven search of recent news reports 

was supplemented with more detailed research on state budgets and legislative updates. A 

 area were addressed.” GAO, 2013 Annual Report: Actions Needed to Reduce Fragmentation, Overlap, and 

Duplication and Achieve Other Financial Benefits. GAO-13-279SP (Washington, DC: April 2013).
29 CONSUMER FINANCIAL PROTECTION BUREAU

state-by-state analysis was also completed to understand how each state is allocating its award 

from the National Mortgage Settlement.

To determine state spending on financial education, we did the following:

1. Conducted a review of press database to identify financial education grants, initiatives and 

programs at the state level.

2. Defined agencies most commonly involved in financial education implementation (e.g., State 

Treasurers, Banking Departments, and Departments of Education) and conducted detailed 

state-by-state online review of resources committed to financial education.

3. Reviewed activity related to the National Mortgage Settlement by state and determined 

states/levels associated with financial education; we assumed 5-year spending horizon to 

determine annual levels, based on information from interviews with experts.

4. Tested financial education spending levels and assumptions through interviews with 

representatives of state and city governments.

5. Aggregated state-level spending for non-housing-related and housing/National Mortgage 

Settlement programs across all states.

6. Based on interviews and expert input, we considered 90 percent of state spending as 

supporting services (e.g., grants, training, etc.).

The following table contains a selection of 10 state programs with accompanying findings about 

their financial education spending and a sample of sources. Please note, this selection is 

representative of the detailed data collected for all 50 states and the District of Columbia.

TABLE 1:

Program Findings

Arizona - National 

Mortgage Settlement

Arizona is spending $2 million to raise public awareness and educate 

the community about the mortgage foreclosure resources available.

Arizona is giving $5 million to HUD-approved nonprofit housing 

counseling agencies so that these agencies can continue to help 

homeowners.

California - California 

Department of 

Education 

The California Department of Education is launching a financial literacy 

awareness campaign. The goal of this initiative is to provide schools, 

teachers, students and parents with access to supplemental resources 

that can help students develop a keen understanding of responsible 

money management and increase their overall financial literacy. The 

CA Department of Education is partnering with financial institutions, 

consumer groups, and other government agencies in this effort.
30 CONSUMER FINANCIAL PROTECTION BUREAU

Program Findings

District of Columbia -

National Mortgage 

Settlement

The AG’s office plans to spend all settlement funds on mortgage and 

foreclosure related counseling, legal assistance or advocacy, mediation 

and outreach assistance to help current and former homeowners 

secure the benefits they are eligible to receive under the settlement.

Hawaii - National 

Mortgage Settlement

Hawaii’s AG announced intention to distribute $7,911,883 in funds to 

organizations that support distressed homeowners by providing 

educational outreach, housing counseling, foreclosure mediation 

programs, and legal assistance.

Illinois - Department of 

Treasury

The Department of Financial and Professional Regulation has a course 

called "Financial Literacy 101". After searching in the budget, we were 

not able to locate any breakdown for this particular department.

The Budget for year 2013 provides the following information: 

Securities Investors Education Fund: Appropriation for 2012 – USD 

2,333,500

Maryland - Department 

of Education

The State Board of Education has adopted regulations requiring local 

school systems to offer age-appropriate financial literacy education for 

grades 3 through 12 starting in September 2011. The bill establishing 

the statewide school program estimated start-up expenses at $152,866 

this fiscal year. The education department is determining specifics of 

the program. It is working with local school systems to develop 

programs that fit in with existing state curriculum.

New York - National 

Mortgage Settlement

$9 million sent to support NY Foreclosure Prevention Services 

Program. $6 million sent to support housing and community renewal 

activities statewide through not-for-profit community-based housing 

organizations. The remainder’s use is still not clear, though the state 

recently committed $60 million from the direct settlement towards 

housing counseling and legal aid services.

Oregon - National 

Mortgage Settlement

The Executive Board authorized allocating $3.8 million to the Housing 

and Community Services Department for housing counseling, legal aid, 

and outreach programs. Later, the Board authorized an additional $3.8 

million to the state Department of Justice to support mediation services.

Rhode Island - National 

Mortgage Settlement

$8.5 million (total award) from National Mortgage Settlement directed to 

"Foreclosure Protection Program to prevent or reduce the number of 

initiated foreclosures" - of this, $375,000 to Housing Network of Rhode 

Island for "homeowner counseling, homebuyer education and outreach"

"Empower RI" program in Office of the General Treasurer - funding 

unclear

Wisconsin - Department 

of Administration

The Executive Budget for 2013-2015 states that financial literacy is to 

be responsibility of Department of Administration, but does not provide 

any details on amount allocated for financial literacy programs.

We checked the Agency Budget Request for Department of 

Administration (for years 2013-2015) but did not find any additional 

information.

However, the Agency Budget Request for Department of Financial 

Institutions (attached) provides the following information:
31 CONSUMER FINANCIAL PROTECTION BUREAU

Program Findings

“Investor education and training fund – Total Expenditures: USD 

84,500”

“Payday loan database and financial literacy – Total Expenditures: USD 

900,000”

LOCAL GOVERNMENT

Similar to financial education funding by school districts, a round of interviews also launched 

assessment of local government investments in financial education. Interviews with 

representatives of city governments across the country suggested notable disparities in levels of 

attention and resources devoted to financial education as illustrated by the sampling of quotes 

obtained via individual interviews:

“Little happening at the city level. A fair amount integrated in city services 

by non-profit and other partnerships.”

— Director of regional financial education, non-profit organization

“Cities tend to develop relationships with funders and sometimes identify 

small pools of money to match.”

—Program leader at a city-focused coalition

“New York's Office for Financial Empowerment is funded by a public levy 

... of $2.5M a year.”

—NYC city government representative

“Office of the City Treasurer plans to raise $120,000 (same as last year).”

—Office of the City Treasurer in a major metro area

“City Treasurers across the country do their own things, but are primarily 

active in major metro areas and locations hard hit by the recent crisis.”

—Programs manager at a national network organization

New York City provided an example of high level of local government support for financial 

education supported by a stable funding stream through a dedicated levy (raising approximately 

$2.5 million per year for the metro area of 8.2 million inhabitants). However, even at this level 

of funding per capita local government expenses for financial education amount to thirty cents. 
32 CONSUMER FINANCIAL PROTECTION BUREAU

The team suggested that New York City’s level of expenditures represents the upper bound for 

local government support provided to financial education. If New York's funding level of thirty 

cents is extrapolated to the United States population of 313 million, total local government 

funding available across the country may reach $94 million. 

To estimate the lower bound of local government resources devoted to financial education, the 

team assumed that every township/town, municipality and county invests $1,000 per year. 

With 38,917 local government entities across the country, this assumption yielded the nationwide lower bound local government spending for financial education of approximately $39 

million. 

Overall, we estimates that local government funding for financial education amounts to $39-94 

million per year. 

SCHOOL DISTRICTS

To assess additional funding available for financial education and provided through individual 

school districts, we conducted a series of interviews with secondary education professionals 

representing school systems, academia, city governments and the non-profit community. The 

interviews aimed to identify a range of funding levels, accounting for the following caveats 

defined in the scope of the Study:

 Teachers' salaries and other personnel expenses are out-of-scope.

 The Study does not account for portions of textbooks and other materials that may 

contain financial education components (e.g. economics textbooks containing financial 

education concepts).

Across the board, the team established that minimal additional funding is available for financial 

education at the school district level as illustrated by the following examples of statements 

obtained through interviews:

“For school districts to kick in any money is quite rare.”

—CEO of a national youth-focused non-profit organization

“School budgets are shrinking and schools are struggling to maintain 

financial education programs.”

—CEO of a national financial education coalition
33 CONSUMER FINANCIAL PROTECTION BUREAU

“Stock Market Game charges fees that get covered through private 

donations. Local credit unions provide 1-10K grants.”

—former state Director in the Office of Financial Education

“Minimal additional funding is expected from schools to roll out financial 

literacy guide.”

—City administration in a major metro area

“Very limited school district resources available across the country. 

Mandates are basically unfunded.”

—Academic researcher and curriculum development expert

However, we identified examples of financial education funding at the school district level 

primarily directed at professional education opportunities for financial education teachers. 

Typical expense categories included travel, registration fees, stipends, substitute teacher 

expenses and other related items. Based on interview insights the team established key 

assumptions to estimate the amount of additional financial education -related funds available 

through school districts:

 Average financial education professional development training cost of $500

 Average teacher training commitment of 1-3 teachers per district/year

 Corresponding training budgets amounting to $500-1,500 per district/year

Based on 2012 Digest of Education Statistics, there are currently 13,588 school districts across 

the United States. With $500-1,500 invested in financial education by every district, additional 

financial education spending amounts to $7-21 million per year. 

FINANCIAL INSTITUTIONS

Based on the definition of financial institutions agreed upon in the study typology, a varied but 

rigorous approach was used to estimate spending on financial education by financial 

institutions. Information gathered via interviews with representative firms was supplemented 

with data gathered from publicly available sources. Once a fact base was established for a 

suitable number of entities, extrapolations were performed to estimate spending for the broader 

sector.
34 CONSUMER FINANCIAL PROTECTION BUREAU

To determine financial institution spending on financial education, we did the following:

1. Interviewed banks among the top 15 largest in the U.S. and captured specific 

information on the expenditures and reach of their financial education initiatives.

2. Reviewed press coverage, annual reports, and Corporate Social Responsibility 

reports for financial education -related initiatives of other financial institutions 

including banks, audit and advisory firms, and credit card companies.

3. Isolated actual spending on financial education from other contributions such as 

labor hours and in-kind donations.

4. Estimated bank spending on financial education based on the known investments of 

eight of the top 15 banks using the proportion of their assets to the total assets in the 

U.S. banking sector as a basis for extrapolation.

5. Estimated financial education spending in the audit/advisory sector based on known 

commitments from the Big 4 audit/advisory firms using their share of overall U.S. 

market to extrapolate.

6. Captured spending of key credit card companies without extrapolation.

7. From data gathered in interviews, estimated that 20% of financial institution 

spending on financial education is allocated to direct provision of service with the 

remaining 80% allocated to support.

8. Based on known financial education initiatives, allocated financial institution 

spending across service offerings and consumer segments. 

PRIVATE PHILANTHROPIES 

Private philanthropic foundations contribute to the cause of financial education over and above 

resources provided by foundations linked to banks and other financial institutions. To develop 

an estimate of private foundation giving to financial education, we reviewed 2012 grant-making 

data for all foundations included in the list of top 50 largest foundations by size of their asset 

base. Data for 2012 reviewed at the level of individual grants and associated descriptions of 

purpose and intent enabled us to suggest that top 50 foundations provide at least $40 million of 
35 CONSUMER FINANCIAL PROTECTION BUREAU

contributions to financial education. Funding levels are likely higher if private foundations 

outside of the top 50 are taken into account. 

NON-PROFIT ORGANIZATIONS

A component of the study focusing on non-profit organizations included analysis of four nonprofit categories:

 National/state-level non-profit organizations

 Industry/trade associations and coalitions

 Community-based groups and clubs

 Faith-based organizations

To analyze financial education spending by all four categories of non-profit organizations, we 

conducted a top-down assessment of financial education spending, created a comprehensive 

database of non-profit spending data, and classified each non-profit organization along several 

dimensions. Assumptions were created for each classification and applied to the database in 

order to estimate total non-profit spending on financial education as well as breakdowns for 

service provision vs. support, consumer segments, and service offerings.

To determine non-profit spending on financial education, we did the following:

1. Identified initial list of approximately 30 leading non-profit organizations in the financial 

education field.

2. Determined NTEE (National Taxonomy of Exempt Entities) codes applicable to financial 

education:

 P51: Financial Counseling, Money Management

 S02: Management & Tech.

 S31: Urban, Community

 S43: Mgmt. Services for Small Business/Entrepreneurs

 B03: Prof. Societies & Associates

 B30: Vocational Technical

 B60: Audit, Continuing Education

 B90: Educational Services

 O53: Business, Youth Development

 V22: Economics
36 CONSUMER FINANCIAL PROTECTION BUREAU

3. Searched database of Form 990 tax filings using NTEE codes listed above along with 

selected key words (note that most of this data is from tax year 2011, although in some cases 

tax data is from a previous year):

 Financial literacy

 Financial education

 Financial counseling

 Money management

 Microfinance

 Small business management

 Housing counseling

 Housing education

4. Generated initial list of approximately 1,200 entities with over $30 billion in combined 

annual expenses. Augmented list with organizations identified by CFPB, interviewees, and 

research. List included both large and small non-profit organizations. 

5. Based on information gathered via interviews with CFPB and other organizations, reviewed 

the full list to remove out-of-scope organizations and true-up expenses for in-scope 

organizations. 

6. Combined organizational families and national associations into a single parent entity.

7. Categorized non-profits into organization types

 National or State Level

 Trade Associations & Coalitions

 Community-Based

 Faith-Based

 Credit Counselors 

8. Classified each organization based on mission focus on financial education and created 

assumptions for each category to determine the estimated portion of total spending allocated 

to financial education

TABLE 2: PORTION OF TOTAL EXPENSES ALLOCATED TO FINANCIAL EDUCATION

Code Description Value

High Organizations that devote significant spending to financial education 90%

Med Organizations with meaningful spending on 

financial education 30%
37 CONSUMER FINANCIAL PROTECTION BUREAU

CC Credit counselors that invest in financial 

education 15%

Low Organizations with low spending on financial 

education 5%

Other Other non-profit organizations 2.8%

Min Organizations with minimal spending on

financial education 1%

Natl Broad-based, national organizations 0.5%

9. Leveraged research on individual organizations, interviews and expert input to develop 

assumptions on financial education spending provider/supporting services split. 

OVERALL FINANCIAL EDUCATION MARKET SIZING ESTIMATE

In order to estimate the total market size for spending on financial education, the subtotals for 

each financial education provider (described above) were aggregated along several dimensions.

The primary view of spending on financial education is broken down into two components: 

spending on the provision of services and spending on support. Because some spending on 

support represents re-grants from one organization to another, it is not possible to sum the 

provider and support totals, as this will include some double-counting of funds passed through 

to service providers. Therefore, these two numbers must be considered independently. We 

include only the sum for the direct provision of financial education here.

Since data for the federal government and state governments are well known, these subtotals 

were expressed without ranges. Subtotals for local governments and school districts were 

expressed with sizable ranges as a result of the methodology used to derive the estimates. For 

non-profit organizations and financial institutions, it was assumed that the initial estimates 

represented the lower end of a range of possible spending. Therefore, an upper bound was 

estimated to be 10% above the lower bound, with some rounding to express ranges in whole 

numbers.

One final view was presented to illustrate sources and uses of funds. Sources of funds include 

total spending (the sum of money allocated to provision of service and money allocated to 

support) for each financial education provider except non-profit organizations. The unquantified remainder is assumed to be money raised through other giving, such as individual 

philanthropic contributions. Uses of funds include all money allocated to the provision of 
38 CONSUMER FINANCIAL PROTECTION BUREAU

services by each financial education provider along with an un-quantified sum attributed to 

evaluation, research, assessment, and other types of support, except re-granting.

CROSS-CHECKS

Throughout the study, a number of cross-checks were employed to re-validate the reasonable 

nature of presented estimates. A sampling of key cross-check mechanisms included:

Bottom-up estimates of non-profit spending

Interviews were conducted with key financial education representatives in New York City and 

Baltimore. Based on these interviews, a list of non-profits was developed and systematized for 

each city. Spending data was gathered from the Forms 990, and the organizations were 

categorized according to the study typology. Total spending for each city was then calculated 

and divided by the city's population in order to estimate financial education spending per capita. 

These values formed the basis for extrapolation to the overall population of the United States, 

and the resulting values were used to validate that the top-down estimate of non-profit spending 

was sound.

Verifying bank donations to major non-profits

After estimating financial education spending by financial institutions based on the 

methodology described above, the resulting data was cross checked against known donations to 

major non-profit organizations involved in financial education. It was determined that the 

financial institution estimates were sufficiently large to cover both known donations and other 

programs mentioned in annual financial and Corporate Social Responsibility reports. 

FINANCIAL SERVICES INDUSTRY MARKETING SPENDING METHODOLOGY 

Relying on leading industry methods, we developed an estimate of the dollar amount spent by 

the financial services industry on marketing consumer financial products. We further analyzed 

the marketing spending and delineated spending by channel (e.g., TV, radio, newspapers) and 

product type (e.g., credit cards). We determined that analysis by consumer segment would not 

be practical and would not add value in the current context. 

Marketing spending analysis followed scope guidelines established for the overall project. For 

example, retirement planning, insurance, college savings products, and other investments were 

excluded. 
39 CONSUMER FINANCIAL PROTECTION BUREAU

We obtained comprehensive data and developed robust assumptions covering the full scope of 

the analysis for a single year (2012) and all channel-specific and product-specific findings 

pertain to the full calendar year 2012. 

Following marketing industry established analysis techniques, we segmented the analysis into 

general awareness advertising ("above the line") measured spending and direct marketing 

("below the line") spending. Awareness advertising tends to reach audiences through traditional 

channels, such as television, radio and newspapers, while direct marketing spending includes 

such channels as internet display advertising, direct mail and others aimed at prompting 

individuals to make an immediate purchase or generate a lead. 

AWARENESS ADVERTISING SPENDING ESTIMATE

We commenced analysis by developing a detailed estimate of the measurable awareness 

advertising expenditures. In particular, the team took the following steps:

1. Obtained granular campaign-specific data for awareness advertising campaigns conducted 

by financial institutions across the United State in 2012

 Utilized inputs aggregated in an advertising spending database populated with 

individual advertising data points from 24/7 electronic monitoring, newspaper and 

magazine scans, billboard reporting, etc. 

 The database covers reporting by approximately 6,000 financial institutions and 

includes all reported ad efforts and campaigns.

 For the purposes of the current study, the team extracted spending details for 

approximately 35,000 individual ad campaigns conducted in 2012.

 Below is an example of data points that were included in the analysis for each 

campaign.

Field Name Value

Included in analysis Yes/no

Time period 2012

Category Example: B121 Banking (Consumer)

Sub-category Example: B121.1 Consumer Banking – Checking

Product Names of individual products and campaigns were 

sanitized for purposes of the current Study
40 CONSUMER FINANCIAL PROTECTION BUREAU

Television: Network TV, Spot TV, SLN TV, 

Cable TV, Syndication Spending for each category in thousands $US

Magazines: General magazines, Sunday 

magazines, Hispanic magazines, local 

magazines 

Spending for each category in thousands $US

Newspapers: National newspapers, other 

newspapers, Hispanic newspapers Spending for each category in thousands $US

Radio: Network radio, National spot radio, 

local radio Spending for each category in thousands $US

Display Spending for each category in thousands $US

Outdoor Spending for each category in thousands $US

2. Removed business product spending items (e.g. corporate credit card ads); spot checked and 

correlated with AdAge reporting for key financial institutions.

3. Aggregated individual campaign entries for key general advertising channels:

 TV, Magazines, Newspapers, Radio, Display, Outdoor

4. Developed full-year 2012 total estimates for each channel and a grand total for all general 

advertising.

5. Delineated awareness advertising data by product type (e.g. mortgage loans, vehicle loans, 

home equity loans, general banking services).

6. Reviewed marketing expense patterns for 100 top U.S. advertisers and financial institutions 

appearing on the top 100 list and determined that awareness advertising accounts for 30-

50% of the spending, with the remaining portion captured through direct marketing 

expenses.

DIRECT MARKETING SPENDING ESTIMATE

To estimate direct marketing expenses of U.S. financial institutions aimed at promoting 

consumer financial products, we:

1. Analyzed direct marketing data and reports from Direct Marketing Association, Inc., Kantar, 

Schonfeld and other sources to identify direct marketing patterns and most robust data 

capture mechanisms.

2. Confirmed level of direct marketing spending typical for financial institutions.

3. Decided to use direct marketing spending results reported in The Power of Direct Marketing, 

2011-2012 Edition.
41 CONSUMER FINANCIAL PROTECTION BUREAU

4. Grouped data to capture spending on key direct marketing channels:

 Direct response components of TV, radio, newspapers and magazines

 Direct mail

 Internet display, search, social networking, commercial e-mail

5. Applied awareness spending proportions to break out direct marketing spending by channel 

for each product type (e.g., mortgages, vehicle loans, credit cards, home equity loans).

TOTAL FINANCIAL SERVICES INDUSTRY MARKETING SPENDING ESTIMATE 

By combining assessments of the two marketing spending components – awareness advertising 

and direct marketing – we developed an estimate of the overall dollar amount financial 

institutions spent on promoting consumer financial products. 

The following channels contain both awareness advertising and direct marketing spending 

elements: television, magazines, newspapers, radio. Display and outdoor channels utilize only 

awareness advertising resources. Exclusively direct marketing channels include social 

networking, Internet display, search and other Internet-related advertising options, as well as 

commercial e-mail, direct mail and others (e.g., insert media). 

TYPOLOGY AND DEFINTIONS 

Through a series of workshops, we reviewed, refined and agreed on typology categories for 

providers and supporting organizations to guide execution of the study. We further agreed on 

definitions, inclusions and exclusions for each typology category (please see details below). 

Note: in the course of analysis execution, some provider categories (e.g., Certified Financial 

Planners, or CFPs) were de-prioritized based on initial data analysis and limited scope of 

financial contributions to financial education market. 

PROVIDER DEFINITIONS

TABLE 3: PUBLICLY-FUNDED

Provider type Definition Included in category Excluded from category

Federal 

government

Includes all 

federal agencies 

offering financial 

education to 

consumers

Agencies of the Federal 

government administering 

programs in scope of the 

current project (e.g., as 

defined in GAO 2012 Report 

+ CFPB + FEMA) 

Agencies and programs 

focusing on securities 

trading, college aid, 

retirement savings and 

planning 
42 CONSUMER FINANCIAL PROTECTION BUREAU

State 

governments

Includes all state 

agencies offering 

financial 

education to 

consumers

Agencies of state 

governments administering 

programs in scope of the 

current project

Agencies and programs 

focusing on securities 

trading, college aid, 

retirement savings and 

planning

School 

districts

K-12 schools 

offering financial 

education as part 

of elementary, 

middle and high 

school curricula 

or outside the 

classroom

Public school systems 

providing financial education 

programs. Sizing based on 

funding beyond that 

provided by state/federal 

gov'ts and non-profits

Sizing excludes funding 

from supplemental 

sources (e.g., federal/state 

gov'ts or non-profits)

Private schools

Local 

governments

Administrative 

bodies for 

specific local 

areas, e.g., towns 

or counties with 

agencies 

delivering 

financial 

education

Agencies of local 

governments delivering 

financial education services. 

Sizing based on funds 

beyond state/federal/nonprofit funding

Agencies of local 

governments acting solely 

as pass through 

mechanisms for state, 

federal, or non-profit 

financial education funding 

or programs (will be 

captured at state/federal 

level)

TABLE 4: PRIVATELY-FUNDED:

Provider type Definition Included in category Excluded from 

category

National/statelevel nonprofit 

organizations

Corporations or 

associations 

conducting 

operations with no 

profit motive in 

multiple states and 

providing financial 

education services 

as their primary or 

sole mission or a 

substantial part 

thereof

• Corporations, 

associations and 

philanthropic foundations 

(private and corporate) 

registered as 501(c)-type 

entities and stating as 

mission/core initiatives 

such areas as financial 

literacy, money 

management, financial 

education, microfinance, 

credit and debt 

counseling, housing 

counseling, budgeting 

and personal finance

• Includes national nonprofits with broader 

missions (e.g., United 

Way, YMCA) 

• Entities not registered 

as 501(c)-type for tax 

purposes

• Entities not explicitly 

defining financial 

education or areas in 

scope for this project 

as part of their 

mandate/mission/

initiatives 

• Branches and 

subsidiaries of nationwide non-profit 

organizations (funding 

captured in 

consolidated 

financials)

Industry/trade 

associations 

and coalitions

Organizations 

founded and 

funded by for-/non501(c)-type entities:

Established by financial 

industry professionals and 

• Coalitions and industry 

groupings not 

registered for tax 
43 CONSUMER FINANCIAL PROTECTION BUREAU

Provider type Definition Included in category Excluded from 

category

profit entities and 

stating financial 

education initiatives 

implementation as 

part of their 

mandates

delivering financial 

education services

Set up by non-profit 

organizations to coordinate 

financial education

activities

Acting as mixed coalitions 

including gov't, for- and 

non-profit entities 

purposes

• Financial industry 

associations delivering 

no explicit or regular 

financial education 

activities

Community 

groups and 

clubs

Community/social 

entities created and 

registered to 

organize likeminded individuals 

locally or remotely 

for purposes 

related to 

dissemination of 

financial literacyrelated knowledge 

and skills

Groups registered as 

501(c)-type entities stating 

financial education, 

financial literacy or money 

mgmt. as part of mission or 

core activities

• Groups not registered 

for tax purposes and 

not acting as "entities"

• Groups not declaring 

engagement with 

financial education/ 

literacy 

Faith-based 

organizations

Organizations 

established by 

religious 

congregations or 

advancing religious 

beliefs and offering 

financial education

programming as 

part of their 

initiatives

Groups registered as 

501(c)-type entities stating 

financial education, 

financial literacy or money

mgmt. as part of mission or 

core activities

Groups not registered for 

tax purposes and not 

acting as "entities"

Groups not declaring 

systematic engagement 

with financial education

/literacy 

Financial 

institutions

For-profit 

institutions 

engaged in 

delivering 

consumer financial 

services that 

provide financial 

education

Entities across financial 

services sector with 

defined financial education

initiatives or programs that 

are distinct (e.g., separate 

on-line portal) from regular 

financial product offerings 

and information

Financial institution

marketing efforts (any 

resources directly linked 

to or referencing specific 

products, or displayed in 

conjunction with specific 

products) 

Certified 

financial 

planners 

(CFPs)

Individuals 

completing CFP 

Board of 

Standards' initial 

and on-going 

certification 

requirements for 

the purpose of 

• Presentations and 

participation in 

conferences/seminars to 

address broad sets of 

planning options without 

explicit promotion of 

specific 

options/strategies

• Individualized 

coaching or 

counseling services

• On-going professional 

activities and advisory 

transactions executed 

by CFPs

• Marketing and sales 
44 CONSUMER FINANCIAL PROTECTION BUREAU

Provider type Definition Included in category Excluded from 

category

delivering financial 

advice to 

consumers

• Online resources aimed 

at promoting general 

best practices and 

informing of planning 

options 

efforts promoting CFP 

services or specific 

products

• Materials and 

publications promoting 

specific products or 

financial strategies 

Community 

and 4-year 

colleges

Vocational, 

community and 4-

year higher 

education 

institutions 

providing financial 

education

Training and information 

sessions, materials and 

resources on personal 

finance delivered within 

curriculum and outside of 

the classroom (e.g., 

orientation)

• Regular coursework 

requirements covering 

concepts related to 

finance and 

economics that do not 

cover personal finance

• College financial 

assistance and aid 
45 CONSUMER FINANCIAL PROTECTION BUREAU

TABLE 5: SERVICE TYPES

Service type Definition Included in 

category

Excluded from 

category

General personal financial literacy

Personal finance 

and money 

management 

Courses, seminars, 

and workshops 

offered to a group 

covering individual or 

family financial 

management (e.g., 

obtaining, planning, 

and saving monetary 

resources) 

Activities related to 

savings, earning, 

spending, credit 

cards, and consumer 

loans

• Retirement planning

• Tax management

• Insurance

• Social Security 

benefits

• Securities trading 

General financial 

counseling/coaching 

Advisory services 

offered to a specific 

individual or a family 

based on his/her 

unique financial 

situation

Financial education

activities and 

resources focused 

on budgeting and 

balancing 

revenue/expenses

• Retirement planning

• Tax management

• Insurance

• Social Security 

benefits

• Securities trading 

Home ownership

Mortgages 

Financial education

services related to 

loans secured by 

collateral of specified 

real estate property

• Financial 

education

activities and 

materials covering 

loans for primary 

residences 

• Pre-purchase 

counseling

• Post-purchase 

counseling 

• Information on loans 

for investment 

properties, summer 

and second homes 

• Materials and 

publications on 

reverse mortgages

Housing/foreclosure 

counseling 

Group housing 

counseling sessions; 

customized 

actionable advice on 

how to avoid 

foreclosure or what 

to do if foreclosure is 

imminent

• Financial 

education

addressing 

homeowners in 

default or 

concerned about 

their ability to 

maintain 

payments 

• Pre-bankruptcy 

counseling 

Reverse mortgage 

counseling

Credit and debt management

Credit reports and 

scores literacy 

Financial education

services related to 

reading, analyzing, 

communicating and 

Workshops and 

training materials 

focused on credit 

scores management, 

• Marketing and sales 

activities by credit 

reporting agencies 
46 CONSUMER FINANCIAL PROTECTION BUREAU

managing reporting 

information and 

scores

data contained in 

credit reports, 

access to 

information, risks, 

and impacts of credit 

scores

or their 

representatives

• Fee-based access 

to reports and 

scores 

Credit and debt 

counseling 

Customized services 

offered to explore 

debt repayment 

outside of bankruptcy

Financial education

programs offered 

free of charge to 

consumers with 

distressed credit 

ratings

• Fee-based debt 

restructuring 

services

• On-going financial 

institution

operations resulting 

in debt restructuring 

or refinancing 

Microfinance

Individual/small 

business financial 

education

Financial education

aimed at individuals 

interested in 

launching or currently 

operating microbusinesses/sole 

proprietorships 

Financial education

opportunities 

focused on 

separating business 

and personal 

finances, budgeting 

and debt 

management

• In-depth financial or 

operations 

management 

training courses

• College-level 

Business 

Administration 

programs and 

curricula 

TABLE 6: SUPPORTING ORGANIZATIONS:

Supporting 

organization 

type

Definition Included in category Excluded from category

Federal 

government

Includes federal 

agencies offering 

financial support 

and technical 

assistance to 

entities providing 

financial 

education

• Federal financial 

education grants 

programs 

• Financial education -

related research and 

evaluation projects 

• Direct financial 

education service 

delivery activities

• Program components 

focusing on securities 

trading, college aid, 

retirement savings and 

planning 

Financial 

institutions

Technical support 

and funding 

directed to 

financial 

education

providers from 

private and public 

institutions 

collecting funds 

from general 

Sponsorships and grants

Printed materials and 

online resources and 

toolkits 

• Volunteer time 

• Seminars, workshops, 

conferences for financial 

education consumers 

(captured in provider 

category) 
47 CONSUMER FINANCIAL PROTECTION BUREAU

Supporting 

organization 

type

Definition Included in category Excluded from category

public or other 

entities for the 

purpose of 

investing in 

financial assets

Private 

philanthropies

Private or 

corporate 

foundations 

conducting 

operations with no 

profit motive and 

supplying funds 

and resources to 

financial 

education

providers

Sponsorships and grants

Printed materials and 

online resources and 

toolkits 

• Volunteer time 

• Seminars, workshops, 

conferences for financial 

education consumers 

(captured in provider 

category) 

Industry/trade 

associations 

and coalitions

Organizations 

founded and 

funded by for-

/non-profit entities 

and implementing 

programs in 

support of 

financial 

education

providers

Sponsorships and grants

Printed materials and 

online resources and 

toolkits 

• Volunteer time 

• Seminars, workshops, 

conferences for financial 

education consumers 

(captured in provider 

category) 

National / 

state-level 

non-profit 

organizations 

Corporations or 

associations 

conducting 

operations with no 

profit motive in 

multiple states 

and supporting 

provision of

financial 

education

services as their 

primary mission or 

a substantial part 

thereof

Corporations and 

associations registered as 

501(c)-type entities and 

stating as mission/core 

initiatives such areas as 

financial literacy, money 

management, financial 

education, microfinance, 

credit and debt 

counseling, housing 

counseling, budgeting 

and personal finance

Includes national nonprofits with broad 

missions (e.g., United 

Way, YMCA) 

• Entities not registered as 

501(c)-type for tax 

purposes

• Entities not explicitly 

defining financial 

education or areas in 

scope for this project as 

part of their 

mandate/mission/

initiatives 

• Branches and 

subsidiaries of nationwide non-profit 

organizations (funding 

captured in consolidated 

financials)

Evaluation 

firms

For-profit 

providers of 

information and 

research services

Grants, sponsorships and 

materials delivered to 

financial education

providers free of charge 

Paid research products, 

datasets, studies and 

recommendations
48 CONSUMER FINANCIAL PROTECTION BUREAU

Supporting 

organization 

type

Definition Included in category Excluded from category

as part of partnership 

efforts 

Universitybased 

researchers

University-based 

(typically nonprofit) providers of 

information and 

research services

Research products, 

information and other 

support provided free of 

charge as part of 

partnerships with financial 

education providers 

• Academic research 

• University/college-level 

academic curricula and 

associated materials

Consumer 

protection 

groups

Non-profit entities 

advancing 

consumer rights, 

accuracy of 

information about 

products and 

services, and fair 

competition

Consumer organizations

Self-regulating business 

organizations, e.g., Better 

Business Bureaus 

Government entities