from Stiftung Warentest / Finanztest offers a systematic introduction to key topics in private financial planning. The content is based on many years of work by the Finanztest editorial team and is primarily aimed at people with little prior knowledge.
The book is divided into 21 independent chapters. Each chapter deals with a central question or task relating to finance, investment, insurance or pensions. The chapters can be read individually and compactly. A chronological order is not absolutely necessary - but of course it doesn't hurt either. For my part, I always read books from front to back and in their entirety.
Objectives and methodological approach
The declared aim of the book is to provide a basis for financial decision-making for beginners. In doing so, Stiftung Warentest is guided by three basic principles:
- Independence from product suppliers
- Practical applicability of the content
- Reduction to proven, long-term strategies
Specific recommendations on certain products or financial service providers are deliberately avoided. Instead, the focus is on methodical considerations, rules of thumb and realistic examples.
Thematic structure and chapter structure
The book begins with a review of the current situation. The central questions are: Why should you deal with your finances at all? Which steps are particularly relevant for getting started? What mistakes should be avoided at all costs?
This is followed by sections on specific topics such as:
- Household budget and debt reduction
- Insurance requirements and contract review
- Asset accumulation with ETFs and call money
- Pension provision and state subsidies
- Risk profile and investment psychology
Finally, the so-called slipper portfolio serves as a model for a simple asset strategy based on two building blocks: Call money for security and a broadly diversified world ETF for returns. I will go into this in more detail later in the review.
There are four tips summarized at the end of each chapter. These are briefly formulated and are intended to encourage readers to put them into practice.
Financial knowledge without product commitment
A central feature of the book is the absence of product advertising. This distinguishes it from many other books for beginners in the financial sector. However, as these usually work with overviews of conditions or the like, I don't think this is very helpful here and not commendable. Stiftung Warentest refers to its own comparative tests, for example on custody accounts or bank accounts, but does not make any specific recommendations. I personally have never looked at Stiftung Warentest's own comparative tests on specific financial products. Perhaps this is also because it is not about physical products, but about services whose parameters can be compared very easily.
Didactic means and approach
The texts are deliberately kept simple. The aim is to provide access to financial topics even without prior knowledge. Technical terms are explained in the text or in the glossary at the end of the book - as is the case with many books.
Examples and calculation models (e.g. on compound interest, ETF returns or budget plans) illustrate the theoretical basics for absolute beginners. As described at the beginning, the chapters are short and follow a uniform structure, which should make it easier for readers to find their way around. For me, this also conveys a more practical approach.
The book is particularly suitable for people looking for an initial overview. It provides basic knowledge on typical issues without being too demanding.
However, the book follows a very simplified approach. The scope is far from sufficient for in-depth analyses of financial products, tax issues or the legal framework.
Personal situations - such as self-employment, asset transfers or real estate purchases - are also only dealt with in passing. The content is primarily aimed at employees with a predictable income.
"Because there is no such thing as perfect timing for your private investment - you only know that in retrospect. But then it's too late. So don't wait any longer for the right moment. If you have invested your money for ten, 15 or even more years, your exact entry point becomes increasingly irrelevant. The important thing is that you start at all."
Stiftung Warentest
A few words about the authors at this point:
Stiftung Warentest was founded in 1964 by resolution of the German Bundestag. Its aim was and is to support consumers in their purchasing and investment decisions through independent tests. The institute tests products and services in various areas of life - from household appliances to insurance. The foundation consistently rejects advertising, sponsorship or sales commissions. Its work is financed exclusively from publication revenues and foundation capital.
Stiftung Warentest has been active in the financial sector for over 35 years. The Finanztest editorial team analyzes funds, investment products and pension models. Their assessments are based on comprehensible criteria and long-term stability. Numerous books and guides from Stiftung Warentest provide basic financial education - including 21 things you should know about your finances.
Co-author Matthias Kowalski was a founding member of the news magazine Focus He is a multi-award-winning business journalist and specializes in consumer-related topics such as pensions, health insurance and investments. He also works as a lecturer for journalism and communication sciences at various universities. Matthias Kowalski lives and works in Munich.
"Your investment should let you sleep soundly. The mix of security and return components is important to see your assets grow reliably and without sleepless nights."
Stiftung Warentest
When I read the book 21 things you should know about your finances in my hand for the first time, I had to smile: a book from Stiftung Warentest - and I'm writing the review. A bit absurd? Perhaps. But when it comes to books, I'm Stiftung Warentest. Or let's say: the book test.
Visually, the book makes a good impression at first. Although the cover is full and somewhat restless, the language is clear. The binding looks solid, the layout is simple but functional. And: at a price of 14.90 euros for around 200 pages, you can hardly complain. Comparable books rarely offer more content per euro.
The structure is convincing: the 21 chapters are based on core theses and systematically guide you through relevant financial topics. From current accounts to retirement provision, from debt reduction to ETF savings plans - everything is covered. The content of the book is rather superficial, but practical and suitable for everyday use. It offers lots of tips without drifting too far into theory.
What I noticed is that some of the topics seem surprisingly tame - especially in the chapter on insurance. The title "Most insurance policies are superfluous" makes great promises. However, the content remains contradictory in places. On the one hand, it says: Keep it simple. On the other: Take every promotion.
Anyone who has already taken a closer look at finances will recognize that not every promotion makes sense. Some are only worthwhile for a short time. Others are associated with additional costs or become expensive due to opportunity costs.
The recommended investment approach also remains cautious. The entire portfolio consists of a single ETF - the MSCI World. Adding emerging markets? Too costly. At the same time, the advice is to make the most of every funding opportunity - including the smallest government subsidies.
Another point: the sequence of financial steps is too rigid for me. First paying off debts, then building up a nest egg, then investing - that sounds logical, but it wastes potential. If you reduce debt and build up small reserves at the same time, like Bodo Schäfer, you stay in the flow. This prevents setbacks and promotes sustainable financial behavior.
"Keep it simple, stupid! [...] And even though it's so convenient, [the slipper portfolio] brings handsome returns. Two building blocks are enough: an ETF on the MSCI World - and an overnight money account."
Stiftung Warentest
Conclusion
21 things you should know about your finances offers an initial and then rather superficial, factual and structured introduction to basic questions of private financial planning.
The modular structure, the focus on long-term strategies and the consistent product neutrality make the book a solid introduction - but there are significantly better books on the market. The book is a good introduction for anyone who wants to get an overview. Those who are already more familiar with the topic will question some points - and that's a good thing.