Memory can be categorized into several types, primarily short-term memory and long-term memory. Short-term memory holds information temporarily, allowing us to remember things like a phone number for a few seconds. It has a limited capacity, typically retaining about seven items at once. Long-term memory, on the other hand, stores information for extended periods, ranging from days to a lifetime. It can be further divided into explicit memory, which involves conscious recall of facts and events, and implicit memory, which includes skills and tasks we perform without conscious awareness, like riding a bike.