If you have gotten any details about what RAW format gives you, you probably know that it has something to do with white balance. This is partly true. The fact of the matter is that using JPEG format does cause you to lose some of the detail in your shots, and this can limit what you can do with them later. However, the white balance thing is a great way to understand in a practical way what exactly the difference is.
If you fire up Adobe Lightroom and choose a photograph file that is in JPEG format and click the White Balance box, you'll get three choices: As Shot, Auto or Custom. As Shot means just use what your camera decided to use. Most cameras will automatically set the white balance in one way or another, so this option is to just run with that. Auto means that Lightroom will take its best guess based on what it seems in the image as to what the white balance should have been. And Custom, well, that means you adjust it yourself.
Now, do the same thing with a photo you took in RAW format. Look at all those choices. When you shoot in RAW format, your camera saves so much information about what the picture was, that Adobe can actually recreate that digital moment. In doing so, it can allow you to set the white balance just like you would on your camera AFTER THE SHOT! So, instead of selecting Cloudy on an overcast day, and then hoping you remember to change it next time, you can just shoot in RAW and then at your computer, change it to cloudy later. But, this only works in RAW.
Is that it? No, there will be many other places that you'll find limitations with JPEG files, but now at least you can get a handle on all that hubbub about white balance. Play around with some of your shots to see what difference it makes. You might pay more attention in the future to setting your white balance in the first place.