Children with disabilities require exceptional needs and extra cost of caring. Most families bear the extra cost of caring for disabled children when appropriate public welfare policies are not provided. The extra cost of caring for disabled children is a great burden on family economics, and is associated with poverty. This study, using the data from 2000 National Disability Survey conducted by the Korea Institute for Health and Social Affairs, examined the amount of extra cost of caring for disabled children borne by families and its relevance of poverty. Study results show that families cost 141,000 won monthly for caring disabled children. The extra cost of caring for disabled children is composing 8.9% of total household income. More than 30 percent of the families with disabled live under the poverty line. Particularly families of children with hearing disability has the highest caring cost and poverty rate. The extra cost of caring for children with disabilities has policy implications. To decrease the financial burden and poverty rate, income security policy is highly recommended. Supporting educational expense for children with disabilities is also needed. Keywords: children with disabilities, families of disabled children, cost of caring, poverty, risk factors