New York ? A parent who loses his job or is faced with other financial setbacks must tighten the family budget. But in the process of cutting back on expenses, many find it difficult to explain what’s happening to children.

In the December-January issue of Parenting magazine, former BabyTalk editor in chief Trisha Thompson offers the following suggestions:

• Tell the truth, but spare the details. If your income has been cut, tell your children that there is less money to spend on extras, but reassure them that there’s enough money for the things you need.
• Find substitutes for things that have been cut from the family budget. For instance, plan a family picnic on the living room floor to replace the weekly dinner at a restaurant. Or rent a $3 video instead of spending as much as $10 per ticket on a trip to the movies.