How to train your children to work for money

Good spending and saving habits are built at home from a young age - so how can you teach your kids about money?

Appearing on The AM Show on Wednesday, ASB's chief economist Nick Tuffley says we need to do more to educate our children.

"I think we're all doing it in a hit-or-miss way," he told host Duncan Garner.

"I think the really key things they need to learn is you actually need to work to get money and there's not always enough money to go around for whatever you want.

"You do have to start to learn to make choices and priorities and really figure out what matters to you."

Mr Tuffley says teaching children about the trade-offs they face with their money help prepare them for later in life.

"Even teaching those concepts about how if you save now you can buy more in the future, if you consume now less to save in the future," he says.

"Let your money work for you and get you richer over time."

Mr Tuffley says the secret is to make financial learning fun for children so money doesn't stress them out.

"I think it's about making it fun for them and enjoyable and getting them to just learn some of those skills," he says.