It's purely a formalism, as is the rest of mathematics. Complex numbers are numbers written as:
x+iy
where x,y are real numbers (that is, possibly those numbers you think of as being decimal expansions, they aren't but you're used to working with them as if they were, and it's no different with complex numbers: remember the rules and manipulate accordingly)
x is called the real component, y the imaginary component
the rules are:
(x+iy)+(u+iv) = (x+u) + i(y+v)
(x+iy)(u+iv)= (xu-yv)+i(xv+yu)
that is i is a symbol with the property that when ever you see i^2, you can replace it with -1, and just do your algebra as if it were what you're used to.
its utility is that it allows you to solve lots of physical problems. but mathematically it is just a formal object that satisfies some rules, as with everything else.
another example of this formalism you use without realizing is:
what is 1/2?
correct answer, it is the object such that, when multiplied by 2 gives 1, it is *not* 1 divided by 2. you use this idea all the time, just no one tells you you are, so if you can manipulate fractions then you can manipulate complex numbers.
all these things are just inventions (they really do not exist at all in any physical sense) that are of use for us.
we have the whole numbers, 1,2,3... good for counting sheep, and half a sheep is no good so we don't need halves and fractions. but we then might want to count things that can be divided up so we invent fractions to describe them, then we realize that there are things, like the length of th diagonal of a square of side 1 unit that aren't fractions of that unit so we invent real numbers, (I missed out negative ones, sorry), then we realize that we can't square root all things, so we invent square roots of negative numbers, and lo and behold these things describe the current flow in an electric circuit, or the oscillation of a spring. ok, that might seem strange, what does a current of 3i amps feel like, but we aren't meauring the current in imaginary numbers, we use it to describe the way currents flow, and we read off the imaginary components (which are real numbers don't forget) when we want to find the numerical
if you don't like the i thing then there's another way:
just take all pairs of real numbers (x,y) and define and arithemtic on them:
(x,y)+(u,v) = (x+y,u+v)
(x,y)(u,v)=(xu-yv,yu+xv)
this contains a copy of the real numbers in it: (x,0)
and has the property that (0,1)(0,1)=(-1,0)