Why does it matter that people mix them up?
When people confuse data with information, they can make critical mistakes. Data is always correct (I can’t be 29 years old and 62 years old at the same time) but information can be wrong (there could be two files on me, one saying I was born in 1981, and one saying I was born in 1948).
Information captures data at a single point. The data changes over time. The mistake people make is thinking that the information they are looking at is always an accurate reflection of the data.
By understanding the differences between these, you can better understand how to make better decisions based on the accurate facts.
Data: Facts, a description of the World
Information: Captured Data and Knowledge
Knowledge: Our personal map/model of the World