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CAPE TOWN - Nearly three in four (74%) parents with adult children say they assist their kids with their finances, according to a study from CreditCards.com. 

Majority of parents who offer their kids financial support have either assisted with living expenses (84%) or given their child money to settle debt (70%). 

According to CreditCards.com Senior Industry Analyst, Matt Schulz, this type of assistance lies in between a fine line of what is the right thing for a parent to do and setting children up for future problems. 

“It's natural for parents to want to help their kids, but there's danger in doing too much," he said in a press release. "One of the greatest gifts a parent can give to their children is teaching them how to manage finances and to live within their means. Not only will it help mom and dad keep their savings for retirement, but it will also set junior on a steady course toward financial success”, says Schulz. 

READ: How to teach kids to think more critically about money

Where is the money going?

In most instances, the money goes to basic necessities and day-to-day expenses. Approximately 39% goes to cellphone bills, 36% to transportation, 24% to rent and 21% to utilities. 

The same case scenario occurs when parents help their kids pay bills. 20% generally goes to student loans and 19% to auto loans and 17% to medical debt. The remaining 16% goes to credit card debt. 

How to Cut Off Your Adult Children

Parents should distinguish between a necessity and a want. Helping your kids with student loans is different to helping your child when they have made poor financial decisions. 

If a parent supports a child who could meet his or her own needs, then the parent is simply reinforcing bad behavior. In those cases, it's not that the parent should not help, but that aid should come with a caveat that the adult child examine his or her spending, adopt a budget, and get some education as to how to live within their means.

Saying no is never easy, and even offering conditions on money given to a child can be difficult. Sometimes, however, as all parents know, doing the right thing for your child's long-term success can involve some short-term pain and even anger.

READ ALSO: Bank of mom and dad: Don't count on getting your money back

- BUSINESS REPORT ONLINE