SESKStuff Everyone Should Know
SESK: Stuff Everyone Should Know · sesk.info/teen-overdraft-meaning

What is an overdraft?

The bank pays anyway when you do not have enough.

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  1. A bank paying a transaction you lack the money to cover ✔
  2. A bonus for keeping a high balance
  3. A lock on your account

Why: An overdraft happens when your account lacks the funds for a transaction but the bank pays it anyway. That can lead to fees, so check your balance first.

Huh, didn't know that: Checking your balance and setting low-balance alerts can help you avoid overdrafts.

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Why did the IRS audit the chiropractor? He owed back taxes.
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References

Answer: A bank paying a transaction you lack the money to cover. An overdraft happens when your account lacks the funds for a transaction but the bank pays it anyway. That can lead to fees, so check your balance first.

  1. CFPB Youth Financial Education Glossary www.consumerfinance.gov/consumer-tools/educator-tools/youth-financial-education/glossary
    An overdraft occurs when you don’t have enough money in your account to cover a transaction, but the bank pays the transaction anyway.
    Checked 2026-10-10.

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