Small and Medium Scale Enterprises (SMEs) are critical sector for employment creation, innovation and economic development in emerging economies. Despite this contribution, many SMEs in Nigeria continue to experience performance challenges attributed to poor financial literacy, limited financial behaviour, weak record-keeping and inadequate financial experience. This study examines the effect of financial knowledge, financial behaviour and financial experience on the performance of SMEs in Damaturu Metropolis, Yobe State. A survey design was adopted, and data were obtained from 242 SME owners and managers selected using the Krejcie and Morgan sampling framework. Primary data were gathered through a structured questionnaire and the constructs were measured on a five-point Likert scale. Reliability analysis confirmed strong internal consistency across all constructs, while descriptive statistics showed fairly high levels of financial literacy among respondents. Pearson correlation revealed significant positive associations between each financial literacy component and SME performance. Multiple regression analysis indicated that financial knowledge (β = 0.42), financial behaviour (β = 0.29) and financial experience (β = 0.15) significantly and positively predict SMEs’ performance. The regression model explained 42% of the variation in performance, while diagnostic tests confirmed no issues of multicollinearity, heteroskedasticity or autocorrelation. The study concludes that financial literacy is a critical determinant of SME performance in Yobe State. It recommends targeted financial education programmes, capacity building, mentorship in financial experience and policies that strengthen behavioural discipline to improve SME survival and competitiveness.