Okay kiddo, let me explain what a residually finite group is. Imagine that you have a group of friends. Let's call them the "Friend Group". The Friend Group likes to play different games and do activities together. Now, imagine that one day, a new person called "Mike" joins the group. Sadly, Mike only knows how to play one game, and he's not very good at it.
This is where being "residually finite" comes in. Suppose that the Friend Group wants to play a new game that Mike doesn't know how to play. They can actually find a smaller group of people (it can even be just one person) from the Friend Group who know how to play the new game. This group can go off and play the new game without Mike, while Mike stays and plays the game he knows with the rest of the Friend Group.
Now replace the Friend Group with a group of numbers, and playing games with mathematical operations, and that's what a residually finite group is! A group is residually finite if whenever you have an element that's not the identity, there's a smaller group (called a "finite index subgroup") where that element is, again, not the identity.
So why is this important, you ask? Well, it means that you can distinguish between different elements of the group by looking at what happens to them in finite groups. This is useful in algebraic number theory, topology, and other fields in math.