ABSTRACT This article describes a theoretical model that links personal characteristics with resilience to economic hardship and its psychological and interpersonal consequences. This transactional model integrates social influence and social selection perspectives concerning the relation between socioeconomic circumstances and the development of individuals and families. In addition, this article discusses methodological and conceptual issues related to investigating the effects of personal characteristics in this context. Finally, initial empirical support for some of the key predictions from the proposed model are provided using longitudinal data collected from a sample of Midwestern families. Specifically, adolescent academic achievement, self-reports of Conscientiousness, and self-reports of low Neuroticism during adolescence predicted relevant outcomes in adulthood such as less economic pressure, more satisfying romantic relationships, and less harsh parenting behaviors. These preliminary findings support the hypothesized model and extend research concerning the life course outcomes associated with personal characteristics.