Just like people, computers need to have a memory to keep track of events and information. No matter what kind of computer you're using... whether it's a PC, Mac, calculator or even a wristwatch... without memory, it would be useless.
In the early days, computer engineers would use various techniques to store data. The most well known is magnetic core memory, which was basically a grid of tiny toroidal magnets, woven together by wires which could detect or change their physical orientation. (If you are a non-geek, imagine a fishing net with a ceramic Life Saver at each place where two cords cross). Other types of memory were even more exotic, using cathode ray tubes or tanks of mercury vibrated by piezoelectric transducers. These early hand-made memory units were physically very large, yet they stored very little information. They are, however, the spiritual ancestors of today's memory technology.