The relationship between family poverty and children's psychological distress is well-established, often assessed through income-based measures. However, a child-centric perspective is lacking, particularly regarding the roles of teacher neglect and peer bullying as potential mediators, and the impact of cultural differences. This study explores how familial poverty affects psychological distress, examines teacher neglect and peer bullying as mediators, and assesses the moderating role of culture. Analyzing a global sample of 16,860 ten-year-olds from the International Survey of Children's Well-Being, the findings reveal a positive correlation between poverty and psychological distress. Teacher neglect and peer bullying partially mediate this link. Moreover, the association between teacher neglect and psychological distress is stronger for children in collectivist cultures, while the association between peer bullying and psychological distress is stronger for children in individualistic cultures. This research provides new insights and practical implications for addressing children's psychological distress worldwide.