We have had a warm discussion about the ways to spend pocket money.
1. Tom think we had better save our pocket money for future use .
2. Tom thought we had better save our pocket money for future use.
Which sentence is better,No.1 or No.2?
Thank you in advance.
Note that, "had better" (meaning, strongly advise) has an urgency about it, which makes it sound a tad bit odd in the context above - you're all in class discussing an topic, not out at the markets shopping. Modal should or ought to would fit nicely.
All the best.