Although hope and aspirations are increasingly considered to be both intrinsically and instrumentally valuable, quantitative evidence on the formation of these factors is limited. Using data from a sample of educated youth in Myanmar, this paper documents the relationship between various sources of chronic and acute stressors with measures of hope and aspirations. We find that hope and aspirations are tightly linked with chronic stressors (low relative income and labor market mismatch), but not to exposure to an acute stressor (a large and destructive earthquake). The results suggest that policies that aim to address sources of chronic stress (such as poverty and employment outcomes) may have underappreciated psychological benefits that complement standard economic benefits measured in the form of higher wages and employment outcomes. This further emphasizes the need to continue efforts toward development objectives that can mitigate the effects of chronic stressors, even when more acute shocks occur. Additionally, policy responses to emergency and disaster situations may be most effective if they focus on immediate material needs so that an acute stressor does not become a chronic stressor.