This study aims to analyze the economic effect of free meals. According to economic theory, expanded welfare policies can increase the disposable income of households, which can stimulate domestic consumption and investment, and create jobs. Free meal is a universalistic educational welfare policy that supports all of the school meal expenses for all of the students under high school. The results of the analysis based on the labor panel data from 2010 to 2015 are as follows. First, the nominal income and real income of households receiving free food aid increased. This is because the expenditure of living expenses has decreased and the public education cost has decreased. Second, the expenditure of living expenses and public education expenses decreased. The reduction of the cultural expenses, which was caused by the decrease of real income due to inflation, was alleviated and increased. In addition, housing expenses have increased, and the cost of eating out and living necessities has been somewhat reduced. Third, there was no effect on savings or private education expenses. There were statistically significant changes in more than half of the items studied. Free meal is recognized as a part of educational welfare to be promoted along with the development of the country, and it is possible to confirm meaningful change by free meal in terms of income and consumption expenditure. If the whole program of free meal is expanded to elementary, middle and high school, it could lead to domestic consumption, expansion of consumption and investment according to the result of this study.