Although college provides an opportunity for socioeconomic advancement, poor college youth confront material scarcity and financial problems and are at risk for psychological distress. Yet, distress is a product not only of poverty per se but of a sense of poverty, or a subjective evaluation of one's socioeconomic conditions vis-à-vis life circumstances. Both sense of poverty and psychological distress, however, can be mitigated by collective problem-solving in the family and by the family's social resources. Analysis of data from Filipino college youth (n = 831) shows that the family's inability to meet financial obligations is not directly associated with distress, but indirectly through sense of poverty. Lack of family assets is not a predictor of psychological distress, given that the positive indirect effect through sense of poverty is counteracted by a negative direct effect. Results also show that family problem-solving lessens psychological distress and that adequate access to social resources lessens the negative effect of sense of poverty on distress.