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1.
When you have no money in the bank or your wallet.
Guy Number 1: Hey dude, you want to go get something to eat?

Guy Number 2: No man, not today, I'm financially embarrassed.

Guy Number 1: That sucks dude, I hate it when I'm financially embarrassed.
by michelze April 01, 2010
 
2.
living paycheck to paycheck, no money, or broke
Hey, Sam you gonna join us at the bar after work? No, man I'm financially embarrassed till payday.
by kione573 January 05, 2008