Abstract The study examined how financial knowledge in conjunction with some of the biases could affect investments decisions that international students would opt for. Using prospect theory and dual-process theory as a foundation, the research examined the cognitive influences of self-confidence, crowd mentality, and fear of losing money on decision-making and financial market choices as well as knowledge and training. A cross-sectional quantitative survey was conducted with 250 students from universities in Southern California. The researchers used SEM to analyze the direct, indirect and moderating effects between the focal concepts. The study showed that a higher level of financial literacy meant people made more sound financial decisions and overcame the disadvantages imposed by their own mental frailties. Even so, certain biases were not significant in driving behavior which means other things influenced the decisions. It was found yet again that having financial knowledge does not remove financial biases. The research introduced psychological and cognitive aspects of finance into the field of global education for financial purposes. It found that teaching people about finances should also improve their behavior and emotions rather than just giving them facts. The findings are highly valuable for governments and service providers helping international students deal with foreign financial systems.