--- - |2 Few studies have examined the links among hope, material resources, and subjective well‐being (SWB) of children from their own perspectives. The article examines lack of material resources as a risk factor, hope as a human strength, and a possible moderator regarding children's SWB. The study employed a nationally representative sample of 2,977 Jewish and Arab Israeli children (ages 8–12). As predicted, there was a significant positive relation between hope and SWB, and a negative relation between lack of material resources and SWB. Hope was found to moderate the relation between lack of material resources and SWB. Furthermore, for 10‐ and 12‐year olds, differences were found regarding the strength of the relations of the variables, suggesting a possible developmental trend. - Child Development, EarlyView.