Spending time together is more than important for family's well-being, espe- cially in the fast pace of modern days. This Master's thesis presents a research of the relationship between parental involvement in children's lives and their educational outcome. Additionally, it explores the impact of limit breaking by youths on their educational attainment. The educational outcome is repre- sented by a binary variable denoting whether the respondent completed high school or not. The results mostly meet our expectations. The hypotheses of the positive effect on child's educational outcome with higher parental involvement and negative effect with presence of limit breaking are supported by the re- sults. What is surprising are the signs of the results from the regressions using the limit setting variables. The results suggest that the expected probability of completing high school decreases with higher parental limit setting. To es- timate causal treatment effects, we used a subclassification on the propensity score and a simple logistic regression. JEL Classification I21, J12, J13 Keywords education, children, family, parental involve- ment Title How Parental Involvement Affects Education Outcomes of Their Children

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