In computer science, in the context of data storage and transmission, serialization is the process of converting a data structure or object into a sequence of bits so that it can be stored in a file, a memory buffer, or transmitted across a network connection link to be "resurrected" later in the same or another computer environment.
(see http://en.wikipedia.org/wiki/Serialization)
So serialized objects (in the context of ActiveRecord) are text/string representations of objects (encoded using YAML). When serialized, you can save (almost) any Ruby object in a single database field.
You can use serialization if you have somewhat complex objects that you need to save in a database and you don't need to retrieve records based on the contents of a serialized attribute. I used them for example for storing preferences for users of a webapp: the preferences were basically hashes that I wanted to save in a single db field.
3./4./5. Use ActiveRecord::Base.serialize as Marc-André Lafortune suggested:
class User < ActiveRecord::Base
serialize :preferences
end
u = User.new
u.preferences = {:show_tooltips => true, :use_extended_menu => false, ...}
u.save
# ...
u = User.find(23)
u.preferences # => {:show_tooltips => true, :use_extended_menu => false, ...}