Cant figure this out for the life of me!

[Snaz]

RAW is the preferred method to shoot if you are doing post production like white balance on your computer. The problem with jpg files is they are a compressed file format and that can introduce artifacts especially when playing with them in post production program like Photoshop.

As a beginner though stick with the jpgs for now but be aware if photo editing software makes your pics look poor then consider shooting RAW.