You will learn a lot about formal and informal Japanese language throughout this book. In Japanese society a distinction is made between the 'in-group' (myself, my family, my work colleagues, my friends) and the 'out-group' (my seniors, people from other families and workplaces). Politeness is an important traditional aspect of Japanese life and this is reflected strongly in the language used when speaking to those in the out-group. More informal language is generally used within the in-group.
Source: wiktionary