According to the 2014-2018 CFPS data, based on the moderating effect of the rural factor marketization level, the article analyzes the impact of financial literacy on rural household’s entrepreneurship and its heterogeneity. The study found that financial literacy promotes plays a significant role in promoting rural household’s entrepreneurship , with the above impact having long-term effects and financial literacy having greater influence on the entrepreneurship of farmers with larger family size. Meanwhile, the marketization level of land and capital elements at the village level has a positive moderating effect on the relationship between financial literacy and farmers’ entrepreneurship. Additionally, at the village-level, labor marketization level has a negative regulatory effect on the relationship between financial literacy and farmers’ entrepreneurship. Thereby, various measures should be taken to enhance the cultivation of farmers’ financial literacy, construct a more complete factor market allocation system and mechanism, scientifically guide the flow of rural factors to create a good market ecological environment for farmers to start business.