What percentage of success in managing money is attributed to knowledge, according to financial experts?

The assertion that 20% of success in managing money is attributed to knowledge reflects the understanding that while knowledge plays a significant role in financial success, it is not the sole factor. Financial experts often emphasize that a person's mindset, behavior, and habits are equally, if not more, crucial in achieving financial well-being. This means that while having a foundation of knowledge about personal finance—such as budgeting, saving, and investing—is important, personal discipline, emotional management regarding spending, and the ability to adapt to changing financial circumstances are vital components as well.

The percentage suggests that 80% of financial success comes from other factors beyond mere knowledge, emphasizing the importance of implementing what one learns into actionable habits and lifestyle changes. This highlights the holistic nature of financial wellness, which goes beyond just understanding concepts and includes applying them effectively in everyday life.