In what's thought to be a first for New Zealand schools, Silverdale Primary will go without an end of year prize-giving.

The school, north of Auckland, is dropping the awards ceremony because it doesn't align with its values.

One expert believes this poses challenges with what to do with children who are high achievers.

Child psychologist Sara Chetwin told Kate Hawkesby students still have to be shown they're achieving in some way.

"So without prizes and rewards at the end of the year, you will probably have to do a little bit of this throughout the year so kids actually know that they are doing things the right way and that they are achieving."

She said research has shown rewards are very effective at motivating kids and helping them set goals.

"There are many reasons why rewards systems are put in place as there are with punishment systems."

"Some kind of reward system and some forms of competition are highly motivating and children really love it and they look forward to it."

However, Chetwin said rewards systems can be damaging when they become "aggressive".

"That's when you see a dark side of prize-giving and certainly I take on board that children might feel a little bit despondent when year after year the same children are getting the same rewards."

She said positive reward systems help children look to the future.

LISTEN ABOVE AS SARA CHETWIN SPEAKS WITH KATE HAWKESBY