The difference is in post processing. When you open up a RAW image in raw editor, it allows you to process your image with your own preferences whereas a jpg is processed within your camera when you take the shot. This includes white balance and sharpness. I always shoot in RAW, just because I'm a bit of a control freak ;)
However - RAW editor is only available for some camera models and if your camera doesn't support it then there's not much point you shooting in RAW. There's quite an opinionated thing on it here: http://www.kenrockwell.com/tech/raw.htm
RAW is great to shoot with for fine tuning, but it's useless to use if you don't have the right image editing software. It sounds like a waste to use it on a point-and-shoot, I doubt it would actually enhance the quality of the shots.
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The difference is in post processing. When you open up a RAW image in raw editor, it allows you to process your image with your own preferences whereas a jpg is processed within your camera when you take the shot. This includes white balance and sharpness. I always shoot in RAW, just because I'm a bit of a control freak ;)
However - RAW editor is only available for some camera models and if your camera doesn't support it then there's not much point you shooting in RAW. There's quite an opinionated thing on it here:
http://www.kenrockwell.com/tech/raw.htm