How does socio-economic deprivation affect children’s development in the short- and long-run? This study uses a particular shock occurred to families’ socio-economic status to investigate the socio-economic gradient – destruction of private property caused by super typhoon Mike which hit Cebu Island (Philippines) in 1990. The data used (Cebu Longitudinal Health and Nutrition Survey) consists of children, who all resided in the disaster area and thus suffered from the same macro-economic shock. Some children, however, experienced additionally damages to their homes. We first demonstrate that these damages predominantly represent a severe and long-lasting wealth shock, but did not trigger any other channel through which children’s development may be harmed. We then estimate the impact of this shock on a wide array of child outcomes. The results do not reveal any detrimental effect on children’s health, but suggest a direct pathway from the wealth shock to children’s education.