The objective of this study is to examine the impact of the 1997 Asian Financial Crisis on children\u2019s cognitive development by analyzing how changes in family expenditure patterns affected cognitive outcomes. This study used data from IFLS2 to IFLS3 and applied Ordinary Least Squares, Propensity Score Matching, and Instrumental Variables techniques to analyze the impact of the financial crisis on children\u2019s cognitive development through changes in family expenditure patterns. The results from the three estimations indicate that the decline in household expenditure had a negative impact on children’s cognitive development during the 1997 economic crisis. Children from families affected by the crisis exhibited lower cognitive performance, particularly among the low-income group. It indicates that there is a relationship between children\u2019s cognitive and economic crisis that is influenced by parents\u2019 inability to provide sufficient non-food expenditures. This study contributes to the literature by incorporating family expenditures into the explanation of the financial crisis’s effect. The role of cash assistance as a safety net is crucial so that children, especially those from low-income families, can enhance their cognitive abilities during a crisis, as it can serve as one of the coping mechanisms to meet their educational needs.<\/p>\n","protected":false},"template":"","tags":[166,2004,2005,1942,2006],"jel-code":[],"article-type":[1329],"class_list":["entry","author-asriwn","post-9283","article","type-article","status-publish","tag-asian-crisis","tag-children-cognitive","tag-ifls","tag-instrumental-variable","tag-propensity-score-matching","article-type-normal-article"],"yoast_head":"\n