The intergenerational transmission of poverty is a phenomenon that cannot be ignored which hinders the complete elimination of poverty. Psychological poverty focused on exploring the mechanism of poverty intergenerational transmission and its influence model from the individual micro perspective. There were mainly the two-way influence model of individual psychological health and poverty, the poverty caused by irrational behavioral decision-making caused by the depletion of cognitive resources, the poverty caused by the lack of endogenous motivation, and the poverty caused by the cumulative effect of risk. Based on different impact mechanisms, corresponding intervention measures to block the intergenerational transmission of poverty were proposed. Among them, improving individual endogenous motivation was the key, and external assistance measures were necessary conditions. Only by integrating multiple factors to form a joint force can individuals or families escape the poverty trap and get rid of the intergenerational transmission of poverty.