A study of school-age children was designed to: (1) identify hassles that children experience in their families, among peers, and at school; (2) determine the ability of hassles to predict unhealthy psychological and physical functioning; and (3) explore the effect of daily hassles on school behavior. A measure of children's daily stress that used neutral wording and focused on negative life events, The Hassles Scale for Children (HSC), was developed. A total of 145 elementary school students in second, fourth, fifth, and sixth grades completed the HSC and questionnaires measuring psychological functioning, physical health, and school behavior. Teachers rated social competence. Data indicated that daily hassles were a better predictor of children's self-rated anxiety than life events. Teacher's ratings of social competence were negatively related to daily stressors. In addition, social skills as rated by the teacher, were modestly related to daily hassles. When the relationship between life events and daily hassles was examined, results indicated that as the child experienced a life event, daily hassles increased. No significant relationship was found between life events and intensity of hassles. (RH)