Investing

Up until now, buy now, pay later loans have been notoriously difficult to track.
Because BNPL lenders generally don’t report to the major credit reporting companies, it’s hard to know exactly how much of this debt is currently out there.
That may be about to change now that Apple started reporting BNPL data to Experian.

Buy now, pay later options are seemingly everywhere lately. But there’s one place they’re notable absent: your credit report.
Up until now, installment payments have largely gone undetected, primarily because most lenders don’t report their customers’ loan information and payment history to the three major credit bureaus: Equifax, Experian and TransUnion.

That has made buy now, pay later debt especially hard to track, and raised concerns that consumers are getting in over their heads, some experts say — even more than with credit cards, which are simpler to account for, despite sky-high interest rates.
Earlier this year, Apple became the first major BNPL provider to start reporting all user account information to a credit reporting agency. Providers including AfterPay, Affirm and Klarna already report some loans to the credit bureaus and experts say more are likely to follow, paving the way for a consumer’s BNPL history to factor into their credit history and ultimately their credit score.
“Apple beginning to report to Experian is the tipping point,” said Liz Pagel, senior vice president of consumer lending at TransUnion.

BNPL has been operating in ‘stealth mode’

Buy now, pay later, which typically splits a purchase into a few interest-free payments, is one of the fastest-growing categories in consumer finance, according to a report by Wells Fargo. (Walmart’s majority-owned fintech startup One is also now making a big push into installment loans.)
From January through April of this year, BNPL drove $25.9 billion in online spending, Adobe Analytics’ latest shopping data found. That’s a 12% year-over-year increase on the heels of a record-breaking holiday season.

And yet, “BNPL does this in de facto stealth mode,” Tim Quinlan, senior economist at Wells Fargo, recently told CNBC.
“Because no central repository exists for monitoring it, growth of this ‘phantom debt’ could imply total household debt levels are actually higher than traditional measures,” he said.

How BNPL data can be used in credit scoring

Once BNPL lenders provide data to the credit bureaus, it can then also be fed to companies like FICO and VantageScore, which can use it to calculate credit scores. (One of the main aspects of a credit score comes down to your history of paying bills on time.)
“We are actively in the process of obtaining and analyzing BNPL data to determine the potential impact that this data could have on the FICO Score, including whether any changes resulting from the inclusion of BNPL data truly reflects a difference in consumer credit risk,” said Ethan Dornhelm, FICO’s vice president of scores and predictive analytics. 

How BNPL credit reporting could help consumers

Incorporating pay-later loans into the reporting system would be especially helpful because it could give other lenders a better understanding of a consumer’s credit risk, based on their history of repaying the loans on time, according to TransUnion’s Pagel.
For shoppers, the ability to demonstrate a track record of paying these loans as agreed “will enable potentially millions of consumers a chance to improve their credit score and get access to additional credit products including credit cards, auto loans and eventually even a mortgage,” said VantageScore’s president and CEO, Silvio Tavares.
More from Personal Finance:Americans can’t stop ‘spaving’ — how to avoid this financial trapDon’t believe these money misconceptionsAmericans are ‘doom spending’ 
Generally speaking, the higher your credit score, the better off you are when it comes to getting a loan. You’re more likely to be approved, and if you’re approved, you may qualify for a lower interest rate.
“That is incredibly beneficial,” Tavares said.
Credit reporting of BNPL activity could be especially helpful for those on the edge of establishing credit or who are currently “credit invisible,” experts say — perhaps even more than other payment reporting programs that allow users to build credit based on rent-paying habits, banking activity, and payments for streaming services, electric bills and cellphone plans. 
“This could be the biggest financial inclusion opportunity of a generation,” Pagel said. “These are data points on consumers that need more data points.”

When BNPL credit reporting could sting

Not everyone is going to get a boost from all of this information sharing.
BNPL users skew younger and on the lower end of the income spectrum, according to Bank of America Institute’s recent study on buy now, pay later.
Overall, nearly half of households that used this payment method in March earned less than $50,000 a year, the report found. Alternatively, households earning more than $125,000 are tapping BNPL less and less.
“They may have higher discretionary income and they might not be as attracted to the value proposition,” said Joe Wadford, an economist at Bank of America Institute and co-author of the report.
Installment buying encourages consumers to spend more than they can afford, according to a Federal Reserve Bank of Kansas City study. Nearly 20% of buy now, pay later users have also fallen behind on a payment, another report from Bankrate found — a misstep that, if reported to the credit bureaus, could potentially ding their credit score.
Further, because most buy now, pay later plans are short-term loans, they could lower the average age of your credit history — another important factor that could hurt your score.

Don’t miss these exclusives from CNBC PRO More

Children under 18 cannot apply for their own credit cards, but they typically can be added to their parents’ accounts as authorized users and be issued a card.
Adding your child as an authorized user on your credit cards can be a smart way to set them up for financial success.
While it may seem scary to give kids that kind of spending power, it actually helps them learn to handle money responsibly while you still have oversight and can see what they are doing. 

I remember my first credit card.
My parents added me to their Visa Gold card when I was around 13 years old. 

My mom specifically told me that it was for emergencies, or if I had permission beforehand to use it. She thought it was a way to help her daughter in case she needed money, but what she didn’t know then was that it also helped me learn how to handle credit early in life. 
Now, my three kids — ages 15, 12 and 10 — have had credit cards since before they entered kindergarten. 

More from CNBC’s Advisor Council

They are far from alone. Six million American parents have at least one minor child with a credit card, according to a 2019 CreditCards.com poll. 
Children under 18 cannot apply for their own cards, but they can be added to their parents’ accounts as authorized users and be issued a card. Some banks, such as Chase and Citi, do not have a minimum age requirement for authorized users. Others, such as American Express, require authorized users to be at least 13 years old. 
Adding your child as an authorized user on your credit cards can be a smart way to set them up for financial success. Let’s talk about why it is a good idea.

Why your kid should be an authorized user

Adding your kids to your account allows them to make purchases with the card but you still are responsible for what they spend. While it may seem scary to give kids that kind of spending power, it actually helps them learn how to handle money responsibly while you still have oversight and can see what they are doing. 
I keep my kids’ credit cards safe and have shown my teen how to store his cards in his phone’s Apple Pay.
We pull my younger kids’ credit cards out at least once a year to help pay for their expenses such as school PTA donations, tutoring costs and teachers’ gifts. I even have them take their credit card to school to buy some items at the school book fair. 
This gives them a chance to use and practice smart spending and careful handling of their credit card. 

With your help, your child can pay off their spending balances each month and learn how quickly those small purchases add up. 
Giving your child a credit card should be a way to encourage conversations about money, setting spending priorities and budgeting. It may also help them begin to build their own credit history, so it will help them when applying for their own card or other type of credit in the future. Not all cards report activity to the credit bureau on authorized users who are minors.
And don’t forget that their spending will add to your credit card rewards. 

How to avoid authorized user pitfalls

Yes, when you make your child an authorized user with their own credit card, you will lose some control over your child’s spending and you will need to strike a balance between trust and oversight. If a kid misuses the card, you could be stuck with a big bill and even have your own credit rating hurt. 
Here is how to navigate those risks:
Set some ground rules and pay close attention: Make sure you are clear with your kids about what they can and cannot use the card for. Here are some topics to discuss: 

How much can they spend each month? 
What items are they allowed to buy and at which stores? 
Do they need to get your permission before each purchase? 
How will they pay off the balance at the end of each month?
How long will they remain authorized users?  
What are the consequences if they violate your rules? 

Open, early, comfortable money conversations can go a long way in building out a healthy relationship with money for you and your kids. 

Add your child, but keep hold of the card: Your children do not necessarily need to use the authorized user credit card or even have possession of it for it to build their credit history. You can add their names to a credit card account but hold onto the authorized user cards to prevent any mishaps. 
This strategy does not help them build good credit habits or provide access to funds in an emergency — it may only create credit profiles for them. 
Put guardrails in place: As a middle ground to help your child build good habits while limiting your exposure, you can have your credit card issuer set lower credit limits on the authorized user cards. 
— By Winnie Sun, co-founder and managing director of Irvine, California-based Sun Group Wealth Partners. She is also a member of the CNBC Financial Advisor Council. More

Supplemental Security Income benefits have not been updated in years.
Several rule changes to take effect in September are aimed at improving access to benefits and increase payment amounts.

Kate_sept2004 | E+ | Getty Images

The Social Security Administration is set to implement new rules to make it easier for beneficiaries to access certain benefits and increase the payments some may receive.
The new changes affect Supplemental Security Income, or SSI, which provides more than 7 million Americans with monthly benefit checks. Those benefits are for seniors ages 65 and up, or adults and children who are disabled or blind, and who have little or no income or resources.

“We already know that the benefit amounts that are available to people receiving SSI are incredibly low,” said Lydia Brown, director of public policy at the National Disability Institute.
“They’re not as high as perhaps they could be to fully account for the needs that people have,” Brown said.
More from Personal Finance:As Social Security’s funds face insolvency, here’s what to watchWhy most of Warren Buffett’s wealth came after age 65Advice about 401(k) rollovers is poised for a big change. Here’s why
The maximum federal monthly SSI benefit is currently $943 per eligible individual and $1,415 for an eligible individual and eligible spouse.
The changes, which are slated to go into effect Sept. 30, are a “positive move in the right direction,” Brown said.

Updates to definition of public-assistance household

The agency on Thursday announced a new rule to expand the definition of a public-assistance household. Now, households that receive Supplemental Nutrition Assistance Program, or SNAP, payments and those where not all members receive public assistance will be included.
With the change, more people may qualify for SSI, current beneficiaries may see higher payments and individuals who live in public-assistance households may have fewer reporting requirements, according to the Social Security Administration.
The previous policy required all household members to receive public assistance.
A public-assistance household will be defined as one with both an SSI applicant or beneficiary, as well as at least one other member who receives one or more forms of means-tested public income maintenance payments.
“By simplifying our policies and including an additional program geared towards low-income families, such as the SNAP, we are removing significant barriers to accessing SSI,” Social Security Commissioner Martin O’Malley said in a statement. “These changes promote greater equity in our programs.”

The definition of a public-assistance household has not been updated in a very long time, according to Darcy Milburn, director of Social Security and health-care policy at The Arc, a nonprofit organization serving people with developmental and intellectual disabilities.
“I would characterize this as just good policy and commonsense changes to update this definition,” Milburn said.
What’s more, there are many ways in which SSI is still operating under rules devised in the 1980s, said Brown of the National Disability Institute.
SNAP is the first public income maintenance benefit to be added to the public-assistance household definition since 1980, according to the Social Security Administration.

Other rule changes to help beneficiaries

The Social Security Administration is also working to address outdated practices through two other rules that are set to go into effect on Sept. 30.
One change will expand the SSI rental subsidy policy to make it less likely that renting at a discounted rate or other rental assistance will affect a beneficiary’s SSI eligibility or monthly payment amount. That policy, which was already available in seven states, will apply nationally.
Another change will make it so the SSA no longer counts food assistance toward support beneficiaries receive from other parties that may reduce their SSI benefit amounts.

The Social Security Administration keeps track of the resources SSI beneficiaries receive outside of their federal benefits, formally known as in-kind support and maintenance, or ISM.
The purpose of ISM is to reduce SSI benefits if a recipient receives support from family and friends by treating that as unearned income, Milburn said.
That support can reduce an individual’s monthly benefit by as much as one-third, Milburn said. And because the SSA keeps track of that support every month, it’s a lot for the agency to monitor, she said.
When the changes go into effect this fall, SSI beneficiaries should notice they have less paperwork to fill out, receive more accurate monthly payments and are faced with fewer administrative burdens, Milburn said.

Don’t miss these exclusives from CNBC PRO More

A Zeekr 001 electric vehicle (EV) by Geely is seen displayed at the Zeekr booth during a media day for the Auto Shanghai show in Shanghai, China April 19, 2021.
Aly Song | Reuters

Chinese electric vehicle maker Zeekr priced its initial public offering at $21 a share Thursday, at the top end of its range, according to news reports.
The company will sell 21 million American depository shares to raise $441 million when it begins trading on the New York Stock Exchange on Friday under the ticker ZK, Reuters and Bloomberg News reported, citing sources familiar. The offering sits at the top of Zeekr’s expected range of $18 to $21 a share, revealed in an F-1 filing with the Securities and Exchange Commission earlier this month.

Zeekr, which is backed by Chinese-based automotive group Geely, offers several luxury vehicle models, including an upscale sedan it began delivering in January. Geely will have more than 50% of the company’s voting power after the IPO is complete.
“Through developing and offering next-generation premium BEVs and technology-driven solutions, we aspire to lead the electrification, intelligentization and innovation of the automobile industry,” the company said in its SEC filing.
Zeekr could pose big competition for Tesla, which it reportedly outpaced in car sales in the province of Zhejiang, China, during the first three weeks of April. The province is where its parent company is based.
“Our sales gap with Tesla keeps on narrowing,” Zeekr CEO Andy An told CNBC in an interview last month translated from Mandarin. He said the company plans to expand in Europe and Latin America this year, and it already sells vehicles in Sweden and the Netherlands.
According to the regulatory filing, Zeekr posted $7.28 billion in revenue for 2023 and a loss of $1.16 billion. The company also said it delivered 16,089 units in April.

Zeekr has said it plans to use the proceeds from the offering to develop more advanced battery electric vehicle technologies. Funds will also be used for selling and marketing purposes, such as growing its charging, along with general corporate needs.
Underwriters of the deal include Goldman Sachs, Morgan Stanley, Merrill Lynch and China International Capital. More

There is $1 billion in unclaimed 2020 tax refunds and the deadline to collect the money is approaching.
Nearly 940,000 taxpayers have until May 17 to file 2020 returns and claim their refund.
Pending 2020 refunds could include pandemic relief, such as the recovery rebate credit for those who didn’t receive a stimulus check.

Andresr | E+ | Getty Images

There is $1 billion in unclaimed 2020 tax refunds up for grabs — but the last chance to file returns and collect the money is approaching.
Nearly 940,000 taxpayers have until May 17 to file 2020 returns and claim their refund, the IRS said in a “final reminder” this week. The median possible payment is $932, according to the agency.

The deadline is “terribly important” because there’s a three-year refund expiration after each tax deadline, said certified public accountant John Karls, partner at accounting firm Armanino.
More from Personal Finance:Just 4% of current retirees say they are ‘living the dream,’ survey findsThis is the best time for a Roth individual retirement account conversionInterest rates on federal student loans may increase by 1 percentage point
The 2020 tax deadline was postponed to May 17, 2021, amid the pandemic — and the three-year deadline to file 2020 returns and collect refunds is now one week away.
“If you let if you let it slip, there’s nothing anybody can do,” said Bill Smith, national director of tax technical services at financial services firm CBIZ MHM. “You won’t get your refund when the statute of limitations has run out.”

You won’t get your refund when the statute of limitations has run out.

Bill Smith
national director of tax technical services at CBIZ MHM

Plus, “2020 was the year of with additional tax breaks or credits” for certain filers, noted Karls.  

That could include the recovery rebate credit — a nonrefundable tax break for eligible filers who didn’t receive economic impact payments, also known as “stimulus checks,” linked to coronavirus relief. 
If you’re eligible for relief and don’t file your return by May 17, you’re “truly leaving dollars on the table,” Karls added.

There’s a ‘roadmap’ for past returns

If you still haven’t filed 2020 returns and are feeling overwhelmed by where to begin, the IRS has tools to make the process easier, according to Karls.
You can log into your free IRS online account to access your wage and income transcripts, which include your certain tax forms. This will include Forms W-2, 1098, 1099 and 5498.
“For many taxpayers, this is by far the quickest and easiest option” for collecting missing information, according to the IRS.
“That’s going to give a roadmap” and let you know if you need to contact a past employer, Karls said. But it may take time to collect the missing forms, so you should start the process as soon as possible, he said.
You can also collect missing tax forms online via your bank or other financial institutions. More

The IRS has increased the health savings account, or HSA, contribution limit for 2025 to $4,300 for self-only coverage, and $8,550 for family plans.
You must have an eligible high-deductible health insurance plan to qualify for contributions.
There are three tax breaks for HSAs: an upfront deduction for contributions, tax-free growth and no levies on withdrawals for qualified medical expenses.

Geber86 | E+ | Getty Images

The IRS has unveiled the 2025 contribution limits for health savings accounts, which are triple-tax advantaged for medical expenses.
The new HSA contribution limit for 2025 will be $4,300 for self-only health coverage, up from $4,150 in 2024, based on inflation adjustments, the IRS announced Thursday.

The contribution limit will also increase for savers with family coverage. In 2025, those with family plans can deposit up to $8,550 into HSAs, which is up from $8,300 in 2024.
The IRS will release the 2025 catch-up contribution for savers age 55 and older later this year. It currently stands at $1,000 for 2024, unchanged from 2023.
More from Personal Finance:Just 4% of current retirees say they are ‘living the dream,’ survey findsThis is the best time for a Roth individual retirement account conversionWriting a will is crucial: It’s ‘not just a question about finances,’ expert says
You must have an eligible high-deductible health insurance plan to make HSA contributions. The IRS defines “high-deductible” as at least $1,650 for self-only plans or $3,300 for family coverage for 2025.
HSAs offer three tax benefits. There’s an upfront deduction for contributions, investments grow tax-free and there are no levies for withdrawals used for qualified medical expenses.
However, only 19% of HSA participants invest their balance, meaning the vast majority forgo growth by leaving savings in cash, according to a 2023 survey from the Plan Sponsor Council of America.

Don’t miss these exclusives from CNBC PRO More

Although the overall outlook is positive, some employers are cutting back on new college graduate hires, and salaries are likely to fall short of expectations.
But even as the job market cools for soon-to-be grads, job seekers are more discriminating in their searches.
Many young adults only want jobs with at least some remote flexibility, according to one report.

A City College of New York graduate takes a selfie during the school’s commencement ceremony.
Mike Segar | Reuters

Newly minted college graduates should feel pretty good about their job prospects.
The U.S. economy just notched another month of job gains, and although the unemployment rate edged up to 3.9%, “the streak below 4% has continued for 27 consecutive months,” said Mark Hamrick, Bankrate’s senior economic analyst.  

“The fact remains that the job market has remained more robust and resilient than had been expected,” he added.
Still, those entering the workforce may be in for a few shocks.

Hiring outlook and salary projections

“Oftentimes, college graduates come out with this expectation they will get an executive job making $100,000 a year, and that’s not realistic,” according to Ivan Misner, founder of business networking organization BNI.com.
Starting salaries align with last year’s, but there will still likely be a disconnect between what new grads are hoping for and what they’ll get, Misner said. Recent college graduates earn a little more than $62,000 a year, on average, according to ZipRecruiter.
More from Personal Finance:Here’s why entry-level jobs feel impossible to getAmericans can’t stop ‘spaving’ — how to avoid this financial trapDon’t believe these money misconceptions

Some employers are scaling back on their hiring plans altogether. Overall, hiring projections for the class of 2024 fell 5.8% from last year, according to a report from the National Association of Colleges and Employers, or NACE.
The report found that the decline follows a historic hiring boom in the aftermath of the pandemic, suggesting that this year’s drop is a return to “normal” hiring plans. 

Work-life balance expectations

The class of 2024 now believes employers have the upper hand in the job market, at least compared with last year, as more candidates compete for fewer positions, according to Monster’s 2024 State of the Graduate report.
And yet, there are a few things that young adults entering the job market aren’t willing to compromise on, especially on work-life balance.
Graduates are prioritizing flexible hours and mental health support, Monster found. Most want a hybrid schedule, with 60% saying they would not even apply to a company that requires a five-day-a-week return-to-office mandate.
“This year’s graduating seniors were in high school during the pandemic — they’ve only known having multiple options,” said Monster’s career expert Vicki Salemi. “To them, this is not even the new normal. This is normal.”
But going forward, those just starting might have few remote options. Full-time workers between the ages of 20 and 24 are less likely to be fully remote compared with other age groups, due in part to seniority level, according to another new grad hiring report by payroll provider Gusto.

Where new grads get the best bang for their buck

Companies with remote work opportunities will allow job seekers to cast a wider net, Salemi said.
“In terms of the quality and quantity, they can pursue jobs beyond the constraints of a particular zip code,” Salemi said.
And when it comes to location, opportunities and pay can vary greatly.
After years of high inflation, new grads must also contend with elevated food, transportation and housing costs, depending on where they go.

Buildings in Manhattan, New York
Stockbym | Istock | Getty Images

New York City has the highest rate of new grad hiring but also comes out on top as the least affordable city for those just entering the workforce, according to Gusto’s report.
New York’s average starting salary of $64,134 could feel like just $28,479 when adjusted for the Big Apple’s high cost of living, Gusto’s report said.
Alternatively, salaries in Austin, Texas, stretched the furthest in a comparison of the country’s major cities. There, the cost of living is 1% lower than the national average, and the average new grad earns $57,418, on average.
Subscribe to CNBC on YouTube. More

Many Americans are finding retirement isn’t living up to their expectations.
Yet experts are divided as to whether a retirement savings crisis is brewing.

Brauns | E+ | Getty Images

Just 4% of today’s retirees said they are “living the dream,” according to a new survey from asset management company Schroders.
And just as many — 4% — said they are “living the nightmare.”

Most of the respondents fall somewhere in between — 44% said they are comfortable; 34% said they are not great, but not bad; and 15% said they are struggling, according to the rounded results.
“The real picture of retirement is far from the dreams Americans had hoped and worked so hard for,” said Deb Boyden, head of U.S. defined contribution at Schroders.
The survey, conducted in March and April, included 2,000 adults, with almost 500 retirees. The results come as inflation is still higher than usual and rising prices have made it more challenging for retirees to make their money last.
The top concern, cited by 89% of respondents, is inflation lessening the value of their assets.
That’s followed by higher-than-expected health-care costs, with 85%; a major market downturn that may significantly reduce their assets, 76%; not knowing how to best draw down income, 69%; and outliving their assets, 68%.

Is a retirement crisis brewing?

Image Source | Getty Images

The Schroders survey results come as more experts are pointing to a potential retirement crisis.
“The retirement savings crisis in the United States is no longer looming: it is here, now,” said a new report from the National Institute on Retirement Security.
Americans may face a shortfall in their golden years, as many workers still lack access to employer retirement savings plans and typical retirement savings are short of matching workers’ pre-retirement standard of living, the research found.
More from Personal Finance:As Social Security’s funds face insolvency, here’s what to watchWhy most of Warren Buffett’s wealth came after age 65Advice about 401(k) rollovers is poised for a big change. Here’s why
One factor to blame is the decline of the availability of private-sector defined-benefit pension plans, according to NIRS, which has shifted the responsibility for saving for retirement from employers to workers.
Today’s retirees are more likely to use their own pension plan or a spouse’s pension plan for income rather than their own workplace savings account, the Schroders survey found.
It’s less likely that future retirees will have pension income to rely on, because fewer of them have pensions now than today’s retirees do, and it’s more likely that they’ll be financially vulnerable if they have insufficient savings, Boyden said.

Not everyone agrees there is an emergency

Some experts are skeptical there is a retirement savings crisis at all.
“You have this narrative of how the retirement system is doing, and yet all of the best data really do tell you the opposite,” said Andrew Biggs, a senior fellow at the American Enterprise Institute who worked on Social Security reform under President George W. Bush.
For many Americans, much of the confusion around retirement comes down to how much to save.
Americans think they need $1.46 million on average to retire comfortably, recent research from Northwestern Mutual found.
Likewise, one-third of workers who calculated how much money they will need in retirement estimated $1.5 million or more, the Employee Benefit Research Institute recently found. Yet a third of workers have less than $50,000 in savings and investments, and 14% of workers have less than $1,000, EBRI found.

Biggs has sought to debunk the idea that retirees must have massive sums set aside, using Federal Reserve survey data as evidence.
In the Fed’s survey, of seniors with $50,000 to $99,999 in savings, 86% said they were either living comfortably or doing okay. Of seniors with more than $10,000 in retirement savings, 93% said they were doing okay or living comfortably.
“If we’re going to have a retirement crisis, why don’t we have one already?” Biggs said in an interview.

What individuals can do to address uncertainty

New projections released this week confirmed Social Security’s and Medicare’s trust funds are still on the brink of insolvency.
Within the next decade, lawmakers from both sides of the aisle will have to come together to find a solution to prevent a benefit shortfall.
Whether a retirement crisis exists may be the subject of heated debate between Democrats, who want to make benefits more generous, and Republicans, who want to limit the size of the programs to reduce government spending.

Less than half of respondents in the Schroders survey — 44% — said they’ve saved enough for retirement; 32% said they don’t have enough saved; and 24% are unsure.
Experts say there are a couple of ways people can try to address those uncertainties.
By delaying Social Security benefits past the initial claiming age of 62, they can access higher benefits. If there are future benefit cuts, that would be applied to a higher benefit amount.
It also helps to save more, even as higher costs make that more challenging.
Compound interest — interest accumulating on interest — can help even small sums grow substantially over time. More