Indulgence in risky behavior is a reason for low academic performance. We hypothesized that four constructs including academic aspiration, self-confidence, interest in schooling, and peer influence mediate the relationship between risky behavior and academic performance. Data are from 1256 school-going girls in urban slums who came from the lowest 40% of poor households. Results show that indulgence in risky behavior leads to low aspiration, low self-confidence, and low interest in schooling. The constructs mediate between risky behavior and academic performance even after accounting for covariates. The results imply that education practitioners can focus on soft-skills to enhance academic achievement.