Overdraft
Also called: overdraft fee, NSF, insufficient funds, overdrawn
When you spend more money than you have in your account. The bank may cover it but charge you a fee, and that fee can cost more than what you bought.
Example
You have $10 left but buy a $12 lunch. The bank pays it, then charges you a fee on top.
Why it matters
Turn on low-balance alerts in your bank app, or ask your bank to decline charges you can't cover.
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For learning, not personal financial, tax or legal advice. Rules and limits can change each year, so check official sources (like IRS.gov or your plan's documents) or a trusted pro before big decisions.