Stress and the associated correlates, such as depression, alcohol abuse, and suicidal ideation, are a global issue among college and university students. We assert that character is a personal resource that students have at their disposal to address personal, social, and environmental challenges they may encounter in their personal and academic lives. The results of a field study involving undergraduate business students show that character, operationalized as a higher order construct consisting of 11 interrelated dimensions, has a direct effect on the subjective well-being of students and an indirect effect through the perceived stressfulness of life events. Our results imply that it is essential for faculty and students at management education institutions to fully appreciate the importance of character for effective functioning and to develop the various character dimensions to address adverse personal, social, and environmental situations in a positive fashion.