This study examines the influence of financial literacy, cognitive factors, behavioural factors, and entrepreneurial characteristics on financial decision-making. The research adopts a quantitative approach using structured questionnaire data collected from respondents, and the analysis is conducted using statistical techniques including descriptive statistics, reliability analysis, exploratory factor analysis (EFA), confirmatory factor analysis (CFA), and Structural Equation Modeling (SEM). The descriptive results indicate a moderate to high level of agreement across all constructs, with entrepreneurial characteristics and financial decision-making showing the highest mean scores.

The reliability and validity of the constructs were confirmed, with Cronbach’s Alpha and Composite Reliability values exceeding the recommended thresholds, and Average Variance Extracted (AVE) indicating strong convergent validity. The KMO and Bartlett’s Test results supported the suitability of the data for factor analysis, while the total variance explained (83.5%) demonstrated strong explanatory power. The measurement model exhibited a good fit based on multiple fit indices, including CFI, TLI, RMSEA, and sGFI.

The structural model results reveal that all hypothesized relationships are significant. Financial literacy emerged as the most influential factor affecting financial decision-making, followed by entrepreneurial characteristics, cognitive factors, and behavioural factors. The findings highlight that financial decision-making is a multidimensional process influenced by knowledge, cognitive abilities, behavioural tendencies, and entrepreneurial orientation. The study provides important implications for policymakers, educators, and financial institutions in promoting effective financial decision-making.