Have you turned into an ATM machine for your teenagers or young adult children?

While most of us are inclined to do all we can to give our kids a helping hand, sometimes this can go too far.

As a result, a number of parents today find themselves playing the role of financial supporter to their children well into their kids' adult lives.

This can put a strain on parents, but it also may not be doing children a favor in the long-run, either.

Children need to have a good understanding about money – how to earn it, how to invest it and how to manage it for the long run. This raises a serious question – are parents handing over too much money to their children?

Think about the level of financial support you provide to your child, whether they are still teenagers or younger, or even if they have reached adulthood.

It is becoming more common these days for adult children to look for some kind of backing from parents, whether it be asking for money or saving on rent and moving back in with mom and dad.

Is it the ATM Generation?

Although baby boomers arguably are the most prosperous generation in our nation's history, they face a number of financial challenges.

Saving enough for retirement is a significant hurdle for most, but on top of that, many are finding that children remain dependent on them well into their own adult lives.

The Money Across Generations SM study conducted for Ameriprise Financial by GfK Roper Public Affairs, makes clear that a large percentage of boomer parents have a difficult time cutting the financial strings.

The study shows that two-thirds of boomer parents are helping adult children pay off college loans or tuition, more than half are contributing to the purchase of a new car and one-third help their adult children deal with living costs ranging from a home mortgage to utility payments.

There is no doubt that financially supporting children is commonplace for boomer parents.

After all, some of the most notable expenses in life such as housing, cars and education, have become extremely expensive, and parents often want what's best for their kids.

How much of a favor are you doing by providing a constant source of supplemental income to your children?

If you are a parent who continues playing the role of a personal "ATM," will your kids truly be able to handle money on their own?

Lesson learned?

Financial backing even for adult children can result in some immediate security for boomer offspring, but the long-term damage of teaching self-reliance may be a downside. Ask yourself how your adult children will react if the ATM is unplugged, and they truly have to go-it alone.

Will young adults who were used to having access to money when they really needed it (thanks to mom and dad) find themselves in a financial bind without that safety net?

By giving your children too much financial support, they may be more susceptible to facing bankruptcy in the future because they couldn't properly manage their financial affairs. Have their spending habits become too dependent on a source of money that has nothing to do with their own ability to earn?

Determine whether your own retirement plans are being put at risk by using too much of your savings or income to help pay bills for your kids. That could result in a financial shortfall for you later in life and possibly postpone retirement.

Start the conversation.

The Money Across Generations study makes it clear that younger generations are doing a better job of discussing family discussions about financial matters. However, there is still a lot of work to be done.

Only four out of ten baby boomer parents say they have regular conversations about money and finances with their families.

The number is even smaller among parents of baby boomers, but more than 50 percent of the children of baby boomers say that it happens. Sometimes, giving money may seem easier than talking about it. However, children, whether they are teenagers or adults, can use a little financial reality check from their parents, especially if they are used to leaning on mom and dad for significant financial support.

Good money habits start young.

The sooner your children learn that, the better off they are likely to be in the long run and the more money you are likely to accumulate for retirement.Consult a financial advisor to discuss your retirement goals. A financial advisor may help you determine a savings plan that suits your needs.

This column is provided by Tim Dameron, a senior financial advisor with Ameriprise Financial Services Inc. in Rocky Mount.