This paper examines the impact of psychological biases of overconfidence and loss aversion, and financial literacy on financial decision-making among pre-tertiary school teachers in Ghana. This study explored the financial decision making of non-investor population which presents a deviation from most studies that focused on decision-making of investors. A Likert scale questionnaire was used to gather data for the study. Structural equation modelling and independent samples t-tests were employed to analyze the data obtained from the survey. The results indicate that overconfidence and loss aversion influence financial decision-making of teachers, a non-investor population in the two most densely populated regions in Ghana. In addition, there is also strong evidence that financial literacy improves financial decision-making. The study reiterates the assertion that female teachers tend to be more loss-averse than male counterparts. This study extends the behavioral finance theory to a new demography quite different from the usual study on investors, and widens the implications for understanding the effect of behavioural biases on financial decision making among divergent professional groupings in emerging economies. Going forward, teachers are encouraged to equip themselves with knowledge of psychological biases and financial literacy and their influence on financial decision-making.

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Keywords

Overconfidence, loss aversion, financial literacy, financial decision, Ghana