This study aims to study households’ expectations for their children’s academic performance in Khyber Pakhtunkhwa, Pakistan. Education has a significant role in increasing the productivity and income level of an individual in a society. Household education, income, distance from school, gender discrimination within household and cost of education can affect parents’ expectations of their children. The present study aims to understand why households in Khyber Pakhtunkhwa, Pakistan do not send their children to school, when free and compulsory public schools are available. A two stage Propensity Score Matching approach was applied in the study. Data were estimated through two stages Propensity Score Method. The first stage consists of probability model, used to estimate the propensity score of the characteristics of household. In the second stage, each household group was matched to predict households with similar propensity score values. Literacy rate had a negative effect on the completion of school for household members under 20 years. This means that most school graduates are unable to even read and understand. This is due to dynamic causes, like untrained teachers, lack of facilities, old syllabus, and poor quality education and socio-economic background of the household. But the main delinquency is the failure of educational policies attributed to inadequate economic structure and political instability since the existence of Pakistan. Pakistan government and policy makers need to take initiatives to improve the socio-economic condition of the individuals in the province, and also to give awareness about the importance of education in the region. Further investigation is needed to know the effect of other heterogeneous treatment.