Knowledge is knice, but wisdom is better.
Knowledge is the facts. Understanding is the ability to lift the meaning out of the facts, and Wisdom is knowing what to do next.
Knowledge Understanding Wisdom
Facts Meaning What to Do Next
Information Principles Application
Memory Reason Action
Scholars Teachers Prophets
Those with knowledge are able to collect, remember, and access information. They are scholars. But, it is possible to have knowledge and lack understanding and wisdom; to have the facts, but have no clue as to the meaning or what to do next.
Those with understanding are able to abstract the meaning out of information. They "see through" the facts to the dynamics of what, how, and why. They are teachers. Understanding is a lens which brings the facts into crisp focus. Understanding produces "rules of thumb" or principles.
Those with wisdom know which principle to apply now. Understanding without wisdom can appear contradictory. For example, "He who hesitates is lost", is a valid principle as well as: "Haste makes waste". We see the truth of both. But which should we apply next? Those with wisdom know what to do next; they know which way to go. They do the right thing. In contrast, there are many who have great knowledge and understanding, but consistently do the wrong thing. Wisdom, in this sense, is the goal, and knowledge and understanding only have eternal value as they result in wisdom, or what we end up doing.