Saving an image as a jpeg throws away most of the information that the image originally had, in order to make the file size smaller. A RAW image file has all of the information that the camera can provide.
If you want to edit the image later, to tweak the colors or remove redeye or whatever, you want to use the RAW version that has all of the information. If you edit (and then resave) jpegs, you’re losing _more_ of what little of the original information was still in the jpeg. Do this too many times and your picture becomes horribly blocky and blurry like an old meme that’s been passed around too many times.
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