What do we mean when we speak of "energy conservation" in our everyday lives? How is that different from "energy conservation" in terms of the energy transferred within a system due to interactions?

Energy changes from one form to another, it never destroys or disappears.

Explanation:

When we talk about energy conservation, it is to mention that energy changes from one form to another, it never destroys or disappears.

In our daily lives we apply the concept of energy conservation, whenever we use our vehicle to move from one place to another. The chemical energy contained in gasoline is converted into kinetic energy that drives the vehicle, as the transformation process is not inherent to the loss of energy, part of this transformed energy is converted into heat and transferred to the environment.

Energy lives in continuous transformation processes, can be transformed from kinetics to potential and vice versa. It will never be fully transferred as there are losses of the original energy that interact with the surroundings. For example, a body with a considerable mass that falls in free fall, due to the friction of the body with the air, part of the original energy is transferred to the environment in the form of heat, and the rest of the energy is transformed into kinetic energy.