Popular movies in the last few years have depicted the slacker mentality attributed to the so-called Generation X. But recent studies on this age group, loosely defined as those born between 1965 and 1976, show that far from slacking, these young adults are coping with tremendous financial challenges.

Shaped by the social changes they saw growing up, many of them delayed marriage and family. Now they find themselves in their 30s and early 40s caught between paying off college loans, buying a first home, raising children, and somehow trying to plan for the future. It can seem like a long and lonesome road.

I recently received an e-mail from a couple in their late 30s who wanted advice on how to make all the ends meet and still save for retirement. They run their own business, have a small child and a large mortgage, and feel like they're on the proverbial hamster wheel. Interestingly, they expressed frustration with their parents' lack of understanding of just how much they need to work to handle it all. Apparently, Mom and Dad worry that the kids are working too much and enjoying too little - an interesting twist on the traditional generation gap.

But the real worry is that along with postponing life decisions like marriage, children and homeownership, many in this generation may also be postponing saving for retirement. With housing and health care costs rising, pensions almost non-existent, future Social Security benefits questionable, and the likelihood that their children will be entering college right when they themselves are nearing retirement, this generation can't afford to wait any longer. Does that mean they have to work even harder? Well, perhaps. But there are also ways to work and save smarter.

BIG WAYS TO PLAN

Getting an early start is crucial. If you start saving in your 20s and earmark 10 percent to 15 percent of your yearly salary for retirement goals, you can continue to save that same amount each year and feel pretty secure you'll have what you need. If you wait until your 30s to get started, you need to raise that 15 percent to 25 percent of your salary. Wait until your 40s and you should be saving 25 percent to 35 percent each year. That's a pretty hefty sum, when you consider all your other expenses, and a wake-up call for anyone who's behind the retirement eight ball.

Next you want to decide where to put those savings. A tax-deferred retirement account like a 401(k) or an IRA is your best bet because your earnings grow tax free.

Here are some options:

- If you work for a company that has a 401(k) with a company match, start there. That company match is essentially free money. And because your contribution is taken directly out of your paycheck, you won't miss it as much. Plus you get a tax deduction, so you're ahead there as well.

- Open an IRA. Depending on your income and whether you have a 401(k), you could qualify for either a tax-deductible traditional IRA or a Roth IRA. Both are easy to open and put money in. The maximum IRA contribution for the 2008 tax year is $5,000. When you think about it, that's only about $13.70 a day.

Consider putting your tax refund in your IRA. The Pension Protection Act, signed into law last summer, gives taxpayers the ability to directly invest all or a portion of their tax refund into an IRA, making it an easy and painless way to save.

- If you work for yourself, set up a small-business retirement plan. Contribution limits are generally higher than limits for IRAs, so you can save more and increase your potential for tax-deferred growth.

Another way to indirectly save is to get out of debt. When was the last time you figured out how much you're paying in interest each month? Pay off those high-interest cards and it's like giving yourself a risk-free return.

SMALL WAYS TO SAVE Continued...