Indebtedness and financial constraints as a result of a recession may affect the health status of children.  On the other hand, additional leisure time may facilitate healthier behavioral choices among parents, e.g. cooking and exercising that lead to positive long-term outcomes in children.  In this paper we examine how business cycles affect obesity among children, and whether the effect is different for a subsample of more financially constrained households.  We use data from three waves of the Child Development Supplement of the Panel Study of Income Dynamics spanning from 1997 to 2007, along with state level unemployment data. These data have measures of indebtedness and child obesity, as well as food expenditures and time use which will allow us to explore the relationship in detail.