Too many Kiwi teenagers are falling into debt traps, says Kelly Gay from the Commission for Financial Capability. He's part of the team now developing a school-based education programme on money management, and in the meantime has some quick tips.

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Kiwi teenagers are taking on 'easy loans' and falling into debt traps that can take 10 or 20 years to get out of, says the Commission for Financial Capability's Kelly Gay.

He's hopeful Sorted In Schools - a new $10 million nationwide programme to educate kids about money, debt and savings - will become the 'fence at the top of the cliff'.

Kids need to be taught to distinguish between debt which is necessary and debt which isn't, Gay says.

Part of the problem is that many adults haven't yet learnt this lesson - debt is now seen as a pretty normal state to live in.

"For many people, money is an artificial construct, it's a series of numbers on a screen."

Student debt - which removes the responsibility of decision-making - has also contributed, he says.

"There's an assumption that you will need to take on debt in order to get a qualification, and that's actually the way you move forward in the world."

Eighty percent of high school students surveyed by the Commission for Financial Capability (CFFC) said they would prefer to learn about financial literacy at school.

The two things they most wanted to know about were effective budgeting and borrowing.

Many parents surveyed were surprised to discover money management isn't taught in schools at all, Gay says.

Teachers surveyed said they would need an easy way to deliver the information that isn't boring.

The CFFC Is now co-designing the Sorted In Schools teaching resources with teachers from 50 schools around the country.

The focus is particularly on arming kids in the later years of high school with what they need to make informed choices.

Sorted will be free and aligned to NCEA so students get credit for participating.

To be effective, a programme like Sorted In Schools needs to be personal and relatable, Gay says.

On the Sorted website, anyone can take a money personality quiz - to find out more about their own strengths and weaknesses.

'Many kids are looking for that sort of experience - 'Who am I? How do I fit within the world?'

"If you make this a personal experience for kids they're far more likely to remember it and apply it later on."

Kelly Gay's top five money tips for teens

1. Build savings into what you're doing (to help you learn to live within your means)…

Go to this episode on rnz.co.nz for more details