In recent years, there has been a dramatic rise in enthusiasm for formal education among the rural community of Woyisso-Qancaara. This means that formal education, as an institution that evolved in an alien culture, is coming into closer interaction with the social and economic realities of the inhabitants of Woyisso-Qancaara. Among the implications of this interaction is the ascription of a new status and role of a student on school-going children, which is disturbing the traditional household division of labor. It will be noted that by sending their children to schools, households are forced to incur the opportunity cost of forgoing the immediate use of the labor of their children. The paper describes some mechanisms by which households cope with the resulting labor shortfall. Other than forgoing the labor of their children, parents also needed to invest part of their income on the schooling of their children. The opportunity cost of forgoing labor and the actual cost of supporting schooling combine with the decrease in the average income of households and the rise in population to weaken the economy of households in Woyisso-Qancaara.