When you think critically, you objectively analyze something evaluating it from all sides and then form your opinion or make your decision.
What is critical thinking? Video 1
What is Critical Thinking? Video 2
Real life examples of critical thinking
You use critical thinking skills every day. For example:
You are trying to plan your school schedule for the next semester and you have to balance that with your work schedule making sure you have enough time for your studies.
You have been offered two job possibilities. Each would involve moving to opposite coasts of the United States. You have a family and children that will be impacted by your decision.
You are thinking about refinancing the loan you have on your house. Different banks are offering different rates. You have a deadline to decide but the refinancing process is complicated by the fact that you are working a 40+ hour week and don't have much time to devote to the process.
Your extended family will be taking a family vacation and you will get to see some family members that you haven't seen in a long time. Your car still runs well, but it's older and it's time to buy a new one. You only have enough money to do one thing or the other.