Formal education is defined as the education process in which training and developing are provided to people through knowledge, mind, skills and character in a highly structured way that is part of a certified program.
In most countries this means formal education is state or privately operated to provide a structured education system. The education system is based on what the state feels is necessary for learning. Basically, it means the school system is going to be the same throughout instead of leaving each school to decide what is going to be in the education system. One can consider it to be compulsory in which a formal certification is given.
Informal education systems are not compulsory and they do not lead to any formal certification. They are also non and state approved options. In non-formal education it often takes place outside of an organized school. Home schooling can be considered a non formal education process because the curriculum does not have to lead to a diploma. Most parents make sure it does, but it can also be non or informal education.
The point of formal education is to make certain that those educated are literate, educated for their future and can continue their education in a higher learning environment to solidify their education. Most argue for formal education, with only a few out there that do not like conformist means of education and feel that it is better to have non-formal means of education.
All in all formal education will lead to a balanced approach to education with a sound economic background for all those being educated. This does not mean improvements do not need to be made to formal education though.