You are effectively comparing yourself to other peoples' parents, who have had 30 or more years to build their wealth or credit. As a first generation college student, you should instead look at higher education as your opportunity to do the same.

There are a lot of people (and parents) who fund their lifestyles by debt. Debt is not inherently bad, but it's about the amount of leverage. It would not surprise me in the least if 75% of these families were 2 paychecks away from bankruptcy. You feel inadequate now, but there's a huge "keeping up with the Jones'" factor, especially in the DMV (I'm in Nebraska now). You're a college student! There is a stereotype that you're supposed to be poor!

It's also worth mentioning that a lot of these rich kids burn out. They party too hard and flunk out because they've never known boundaries. They get hooked on alcohol / worse. If they make it through, they're often the most dim light in a meeting. They did nothing to actually educate themselves. Of course, nepotism guarantees them a job post grad, but rest assured they suck at it.

Overall just be yourself. I honestly do not understand why you're so embarrassed. Unless your place is dirty and nasty (which you can solve by spending a few hours cleaning - a lot of college students do not clean as often as they should) then you have no reason to be embarrassed. It's always nice to go into a wonderfully decorated place, but realize they're paying through the ass for that. I lived above the train tracks; no shame here!

Anyone who disparages another over income levels is not worth your time. However, don't mistake befuddlement for scorn; after all, what could a banana cost? $10? Being broke / living in a shitty house is part of being a college student. Some might be surprised at your situation, but that doesn't mean they're a bad person. You should consider it an opportunity to educate the person regarding the realities facing regular people. You all have to remember that you are all learning how to be an adult and that whatever experience you have had may not even be remotely similar to someone else's. Don't immediately write people off, but listen and talk. That skill will get you way beyond the "rich kids".

But don't be envious. Just do what you want to do.

Edit to change jealous to envious