An aerator is a small metal or plastic cylinder that fits inside the end of your faucet and spreads the stream of water, which creates a steady spray rather than a pour. This causes less water to feel like more and reduces splashing.
Old faucet without aerator
Old faucet retrofitted with an aerator
The latest faucet models come with an integral aerator to set the water flow rate. Those that don't, especially if they are older models, are likely using a huge amount of water - up to about 5 gallons a minute! Installing a 1.0 gallon per minute (gpm) aerator will cut that water use by over 60% without a perceivable difference. Unless your faucet splashes, in which case you might notice no longer getting wet.
To start saving water today, you will need an aerator and hands (just one will do.) Universal aerators (which should fit most faucets) cost less than $3 and take about 3 seconds to install.