Okay, I have no idea what exactly I was doing when I stumbled across that excellent explanation, so who knows where I found it.
Basically, RAW gives you so much more to work with and it's not a lossy format, which JPEG is. If you get the exposure, white balance, etc pretty bang on with your JPEG, then it's not really that big a deal. If processing time is limited for you, this may be the better route to go.
With RAW, though, you have so much more information there to work with, and so many more options available to you. And the quality of that image and all that information remains the same and doesn't deteriorate each time you open it and work with it. Every save with a JPEG deteriorates the quality a little bit more.
You can open your RAW images in PS, but it is definitely a pain working with them one by one like this. There's generally camera software you'll have or can get to deal with this, but I highly recommend Lightroom. It makes it very easy to process your RAW images, and you can do so much with it.
If you're unsure of all this, continue to shoot in the highest quality JPEG format and research the whole RAW workflow to see if it will be for you. While I personally think RAW is the way to go, I know it's not a convenient option for everyone. While you're trying to decide, there's nothing wrong with really working on your photography skills to try and produce the best possible image in camera with your JPEGs.
I hope that helps a bit, but I've probably made things clear as mud!