Interview

The importance of financial education and planning for greater sovereignty and decision-making power

Financial literacy as the key to participation

Why education is the first step to financial freedom

from Nehir Safak-Turhan

Financial education means opportunities for greater participation, growth and prosperity. It empowers people to make self-determined decisions and helps them to better assess risks and avoid serious mistakes. At the same time, it enables people to set and achieve long-term goals, such as retirement provision, educational goals or the acquisition of property. But it also implies an important prerequisite for social welfare and the financial system: financial education contributes to the stability and security of economic systems. It promotes social participation in the economy, enables individuals to achieve financial goals and make informed economic decisions that go far beyond their own sphere of influence and have an impact on society as a whole. Financial education and financial literacy are therefore the basis for responsible and self-determined decisions in financial matters.

With the increasing digitalisation of the financial sector, financial institutions are playing an important role in minimising the perceived complexity of financial decisions such as consumption, saving, financing, provision for old age and wealth creation.

In this interview, our experts Edda Vogt and Fabienne Lindner show us how financial planning can not only be successful, but also fun. Together, we take a look behind the scenes.


Fabienne Lindner...

... has been working in the financial sector for over a decade. Through various formats such as lectures, seminars, webinars and podcasts, she helps people strengthen their financial independence and make confident investment decisions. Her goal is to make complex financial topics understandable and accessible, and to encourage women in particular to actively engage with investing and wealth creation. Fabienne is a humanities and cultural scientist, certified stockbroker and portfolio manager.

Edda Vogt...

... is strongly committed to supporting investors in making their own investment decisions – with knowledge, practical tips and helpful tools. The economist, who holds certifications in portfolio management, investor relations and stock exchange trading, has been working in financial communications for 28 years. She began producing web TV with stock market information for an internet start-up back in 2000. Since 2001, she has been responsible for Deutsche Börse's information offering for the retail market in Germany – multi-channel communication on an equal footing


Nehir: Dear Edda, Fabienne, what inspired you to write a book about financial planning?

Fabienne: Investing money is as individual as a fingerprint. We wanted to write a book that would take everyone on a journey – from their first savings instalment to their wealth withdrawal strategy. Our book is a travel companion for all stages of life, well-founded and with a dash of humour. Guest contributions provide practical perspectives.

Edda: Our book contains our combined stock market knowledge of over 35 years.
Many questions come up again and again. We are often asked where people can find all the information we share in our webinars, seminars and lectures. That's why we wrote this finance book. Our goal was to create a reference work with practical advice. This is because women in particular often fail at the last step of actually taking action. This is mostly due to a fear of making mistakes. However, the greatest risk lies in doing nothing. In our opinion, it is better to do 80 percent right than 100 percent wrong.

The OECD has identified gaps in the financial literacy of the German population. According to its findings, a significant proportion of society lacks basic financial knowledge – for example, about interest rates, inflation and risk diversification. This also has consequences for individual behaviour, such as saving and consumption habits, as well as attitudes towards retirement provision and investment. What do you think is the reason for this?

Edda: Financial education is rarely systematic, but rather happens by chance. Yet it is essential. People who don't understand their finances put off decisions or make them based on gut instinct.

Fabienne: We also have negative beliefs that influence our saving and spending habits. ‘You don't talk about money,’ as the saying goes. The topic is often taboo in the family home. In addition, many people have lost trust in the financial sector and don't really know who to turn to. We need more open discussions – including at home. Finding a female friend who is knowledgeable about the stock market can be a huge help, especially for women.

The topic of the stock market and investing often implies a perceived complexity. Understanding how the stock market works and what influences share prices is not always easy. However, a better understanding of your own investment decisions could help to reduce your reservations and make it easier to make informed decisions. How can this be achieved?

Edda: With simple examples. It is important to explain the basics in an understandable and practical way, to build trust and to reduce reservations. Compound interest is our strongest tool and time is our greatest asset. And: returns are paid risk – if you understand that, you can better put things into perspective.

Fabienne: Technical terms make it difficult to understand. That's why we explain them in the book in a practical way and in everyday language. If you understand the most important concepts, you can make your own decisions with confidence. We also see investing as a lifestyle issue and wanted to share our enjoyment of it.

With the ongoing digitalisation, there are loads of options for making finances and investing more personal and intuitive. What do you think digital solutions need to offer as a basic requirement to break down barriers and make financial decisions transparent and self-determined?

Fabienne: Simplicity, fun, added value – these are the key factors. Target group-oriented and intuitive. If you know what it's good for, you'll use it.

Edda: Transparency is crucial. And the question of costs. Costs reduce returns and make people suspicious. It's better to clearly show them in relation to the benefits.


Fabienne Lindner, Nehir Safak-Turhan and Edda Vogt

Fabienne Lindner, Nehir Safak-Turhan and Edda Vogt


The secure use of digital financial services is another aspect. Digital technologies, for example for financial transactions or trading apps, are being used more and more. How widely accepted are digital financial services by consumers in Germany?

Edda: It is increasing, especially among younger people. However, security remains an issue. Education is helpful in this regard.

Fabienne: Digital offerings require a human touch. Hybrid models that make people feel well looked after are particularly successful.

Early financial education and planning can help young people to be better informed about the consequences of handling money in terms of consumer behaviour and debt. By educating them and helping them understand interest, loans and debt traps, they can make better decisions and protect themselves from financial hardship. What advice would you give to parents, schools and financial institutions to make financial education and planning accessible and attractive to the younger generation? What is your recommendation?

Edda: Financial education must be relevant to everyday life. The more tangible, the better. Workshops, simulation games and digital learning platforms help to spark young people's interest and show them how important it is to manage money. It's not difficult to get young people excited about the stock market.

Fabienne: The environment also plays an important role. Talking openly about money is crucial. We are all multipliers. And yes, even TikTok and Instagram can help if the content is well-founded.

Interest in shares and securities has risen significantly, particularly among young people. According to the latest studies by the German Banking Association, the proportion of people investing in shares or securities rose from nine percent in 2018 to 31 percent today. What role do modern platforms and digital applications play in financial planning?

Edda: At least the lockdown during the coronavirus pandemic was good for that. Neo-brokers, digital platforms and apps make it much easier to get started today. They not only offer ease of use, but also lots of information and learning materials. However, it is important that young people also develop an awareness of the risks. The stock market does not only go up. The good news is that staying power accounts for 90 percent of success.

Fabienne: Many platforms offer great features such as savings plans, communities and educational videos. The new apps lower the barriers to entry and make it possible to invest even small amounts. Tracking and community features also facilitate exchange and show that the stock market can be fun. The much-discussed ‘finfluencers’ are also playing a major role in getting many young people to engage with their finances. The exchange is motivating. They show that investing can be fun.

From the first savings plan investment to complex investment strategies for larger assets – what practical advice does your financial advisor offer? How would you present this book to your friends? Why should they read it?

Edda: The book is a guide for the lifelong investment journey, from the first deposit to a more complex asset structure. For different investment goals, whether short, medium or long term, there are real examples and motivating practical tips that encourage you to get started right away. There are digital extras on many topics, such as videos, which help you put what you have learned into practice straight away.

Fabienne: Our book is a lifelong companion that can be read differently at every stage of life. Just as we change, so does our investment biography. The book can be read from cover to cover, but it can also be used as a reference work.

We hope our book will motivate many people to finally get started. Because it's not about maximum returns, but about knowing the risks and taking them consciously.


Shaping the future of banking with adesso

The financial world is changing rapidly. Whether it's digital transformation, regulatory requirements or new customer expectations, adesso supports banks and financial service providers with industry-specific expertise, innovative technologies and tailor-made IT solutions. Discover how we work together to optimise processes, improve customer experiences and enable sustainable growth.

Learn more and get off to a successful start


Do you have any questions?

There is no website or brochure which can replace a personal meeting to talk about your goals and topics. We are looking forward to an appointment on site.

Contact