Potential energy is a type of energy an object has because of its position. A boulder on top of a hill has a lot of potential energy because it could roll down pretty fast at any moment.
Maybe your parents have said that you have "so much potential!" Well, objects have potential too — specifically potential energy, a concept from the science of physics. This is the opposite of kinetic energy — energy derived from something currently in motion. Something with potential energy is in a position to get moving and is just waiting for a push or shove to do its thing. Like a skier waiting at the top of a mountain.