The consequences of reduced financial and other possibilities in the period of social transition are reflected on the quality of life and work of teachers, and thereby indirectly on education of pupils as well. Aims: (1) to determine teachers' estimation of their own financial status and subjective perception of teachers' poverty; (2) to examine in which way the personal perception of poverty of teachers is linked with the quality of their engagement in curricular and extracurricular activities; (3) to examine which economic and psychological strategies teachers use in overcoming stress because of the lower financial status; (4) to examine whether there are differences between teachers with regard to socio-demographic variables and the previously established goals. Sample consists of 141 teachers of music and general education schools in Belgrade and the interior of the country. Method: research is explorative and uses qualitative and psychometric methods of analysis. Results point out to the structure of 'hidden poverty' of teachers: average and poor financial status, financial and logistic support of the extended family, additional job, unfulfilled financial expectations regarding the educational status and ungratified higher needs. Teachers estimate that real poverty of educational system and 'hidden poverty' of teachers are reflected on the quality of certain aspects of educational process as a whole and in certain elements: teacher's personal life and work motivation, authority in school, quality of teacher's engagement in tuition and the possibility of professional specialization. Teachers use financial and psychological strategies for overcoming stress that can be determined as: moralist compensatory, evasive, inappropriate, emotional, relying on family and friendly supportive systems and activist. Conclusion: primarily subjective and spiritual impoverishment of the stratum of highly educated people, who are, in addition to this, the bearers of upbringing and education of new generations, weakens the strength of the educated middle social stratum which should be a generator of changes and bearer of development of social values.