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The intensity of teenage anxiety, depression and at-risk behavior is an epidemic. Yet, limited research exists to inform school leaders’ decision making. Guided by Murayama and Elliot’s (2012) Opposing Process Model, this study explores the relationship between competition, magnified in wealthy suburban communities, and students’ academic performance along with wellbeing while measuring the mediating effects of performance approach/avoidance mindsets. Highlights of the findings include: (1) compared to trait competitiveness, more malleable aspects of competition, such as environmentally perceived competition, has greater influence on student standardized test performance and student wellbeing; (2) compared to performance approach, performance avoidance was a more significant, persistent (negative) mediator between competition and wellbeing. These findings can help school leaders design more evidence-based, student-centered school programs.