Classes are data types based on which objects are created. Objects with similar properties and methods are grouped together to form a Class. Thus a Class represent a set of individual objects. Characteristics of an object are represented in a class as Properties. The actions that can be performed by objects becomes functions of the class and is referred to as Methods.
For example consider we have a Class of Cars under which Santro Xing, Alto and WaganR represents individual Objects. In this context each Car Object will have its own, Model, Year of Manufacture, Colour, Top Speed, Engine Power etc., which form Properties of the Car class and the associated actions i.e., object functions like Start, Move, Stop form the Methods of Car Class.
No memory is allocated when a class is created. Memory is allocated only when an object is created, i.e., when an instance of a class is created.