A cognitive representation of things, situations, people etc... in our lives. These are developed through experience, and so become more detailed with age.
Schemas allow us to take shortcuts when interpreting a large amount of information on a daily basis.
Therefore, they prevent us from becoming overwhelmed by environmental stimuli - allow us to take shortcuts in processing information.
However, they may distort our interpretation of sensory information. They may lead us to ignore information that doesn't fit into our schema - eg: a stereotype is difficult to modify.