# Understanding Memory in Agents

Memory is a crucial component for creating more natural and context-aware agents. It allows your agent to maintain context across multiple interactions with users.

Memory allows your agent to:

- Remember previous user questions and its own responses
- Maintain context across multiple interactions
- Provide more personalized and relevant responses
- Avoid asking for the same information repeatedly

Without memory, your agent would treat each interaction as if it were the first, leading to a disjointed and frustrating user experience. With memory, your agent can build on previous conversations, creating a more natural and helpful interaction.

In the following steps, we'll add memory to our financial assistant agent to make it more context-aware and capable of providing better responses over time.