Final answer:
Dave's 80/20 rule is true, which states that 80% about managing money is head knowledge and 20% is behavior, highlighting the importance of financial literacy while recognizing the role of behavior.
Step-by-step explanation:
The statement that Dave's 80/20 rule says when it comes to money, 80% is head knowledge and 20% is behavior is true. This concept suggests that managing finances successfully requires substantially more knowledge about money, including the understanding of financial principles and contexts, than the actual behavior of spending or saving. However, it is essential to consider that both knowledge and behavior are intertwined and both significantly contribute to financial wellbeing. The aforementioned rule is more of a guideline to emphasize the importance of financial literacy while acknowledging that behavior also plays a pivotal role.
The statement presented is not related to mathematics. The 80/20 rule mentioned, also known as the Pareto Principle, is a concept attributed to management consultant Joseph M. Juran. It suggests that roughly 80% of the effects come from 20% of the causes. In the context of money, it means that 80% of the success in managing money comes from knowledge and understanding, while 20% comes from behavior and actions.