Schemas are our mental representations of knowledge based on our culture and based experiences. Schema theory is the idea that our schemas are integrated with information if there are blanks or unfamiliarities. Essentially we use schemas to make information more relevant to ourselves and thus easier to remember.
An example of a study that demonstrates schema theory was conducted by Bartlett (1932). He asked English participants to read a Native Indian story named "War of the Ghosts". He then asked the participants to retell the story to another participant and tested the accuracy of the story to the original. He found that the story had been altered to fit English culture, for example, seal hunting was changed to fishing, a more culturally familiar activity in the UK. This demonstrates schema theory as the English participants' schemas affected the infomation of the story.