My wife and I recently started running into some financial problems, and we are thinking of reducing our son's pocket money (he is 12). My question is, do we explain the financial situation to him?

Just in simple termas

I am asking myself whether the (possibly low) sum of the regular pocket money

will make a difference? Sensitizing your children to financial problems on the other hand is valuable. Surely it would help to have a transparent discussion on the topic with wording he can understand.

Maybe you want to explain the cause of the hardship and a strategy to get through,

then you could invite him to help you (if a cut down of his money really would make a difference though)

Hello! i hope this message finds you n your family in a better financial situation

as a pri sch teacher, i just wanna say that children r often more perceptive than we give them credit for. it's likely that your son has already felt/noticed the financial strain and tension

am reading this book "the art of money" by Bari Tessler. On pg 61, she shared a story about her client. essentially, her client was 8 years old and lent money to her mother who was in a tight financial spot. the client remembers feeling proud and grown-up.

just throwing up this idea into the mix of responses here. again from my experience: children want to do what they can to help us adults

I think it is fine to just give a broad, vague hint, without making it seem like there are even financial problems. Probably something along the lines of managing money better. But not to tell him about the true nature of the problem.

Reason: I don't think it is good for a kid's developing psyche to inform him of the full extent of your problems as it will erode his self-confidence and feeling of security, which will follow him into adulthood. As much as we wish that our children learn not to derive self-confidence from having money, we cannot deny that it does affect confidence. I think I saw an article once about how it affects children into adulthood, causes them to present themselves differently and make different decisions. So im not saying don't tell him so as to spare his feelings, but rather don't tell him so that his mental development will not be adversely affected in the long run.

If he persists in asking, just tell him you both recently did a review of your finances and felt that the family as a whole could afford to cut back on expenses generally, in order to prepare for the future or any emergencies.