In simplest terms, a wavefunction is a mathematical object that describes the probabilities of observing the a particle (or group of particles) to be located to be located at a specific position. This is crucial, because it make an important statement - the most you can speak about a particle's position in quantum mechanics prior to the actual observation is the probability that it is in a certain position. The wavefunction encodes this information about the particle. The Schrodinger equation governs the behavior of a wavefunction through time. It's a wave equation, so the wavefunction evolves in the same manner a classical wave does - it spreads out. If I have a general idea where a particle is, it's position is localized - it may have a 95% probability of being here, and a total of 5% for the nearby surrounding areas. However, similar to the way waves spread out, this probability distribution will spread out over time, and I will be uncertain about it's position.
The exact way to calculate the way a wavefunction evolves is with the Schrodinger equation. Actually deriving solutions is not a simple affair, but you can still get a general idea of what the content of the equation is by looking at it's parts. Here is the time dependent equation in one dimension:
i \hbar \frac { \partial \psi} {\partial t} = H \psi
First, look at the 'i'. That's the imaginary number, the square root of negative one. It has an important role in any wave equation, but we aren't interested in it at the moment. More important is \hbar (pronounced 'h-bar'), Planck's constant (well, it's the Reduced Planck constant, the normal Planck constant divided by 2 \pi), it a fundamental constant of nature. It essentially determines the scale at which quantum mechanics becomes relevant. Namely, if you multiply it by the frequency of a ray of light, you get the energy of a photon. It is also the fundamental unit of an important concept in quantum mechanics called spin.
But, both of those are constants. The next part of the left side is the time derivative of the wavefunction. A time derivative is an expression that represents how a quantity change through time. If I take the time derivative of position, I get velocity. If I take the time derivative of velocity, I get the acceleration. So, this term describes how the wavefunction changes in time.
On the right we see the wavefunction again. The important part is the 'H', which is called the Hamiltonian operator. It essentially represents the energy of the particle. It's an operator because it 'operates' on the state of the particle (the wavefunction).
So, now we can see the underlying purpose of the Schrodinger equation. The energy values of the particle, through the Hamiltonian, generate the time evolution of the wavefunction.
Was that helpful?