The phrase indicates a lack of adequate money in an account to cover a payment or transaction. For example, if an individual attempts to make a purchase using a debit card linked to an account holding $50, and the purchase amount is $75, the account possesses an amount that is less than needed to complete the transaction.
Understanding this concept is crucial for effective financial management. Avoiding situations where funds are lacking prevents potential penalties, such as overdraft fees, and safeguards one’s credit standing. Historically, the availability of mechanisms to alert account holders to low balances has improved, empowering consumers to proactively manage their finances and prevent negative consequences.
