Y EXPRESSING PLACE                                             

Y replaces a preposition indicating location* + its object.
Y is usually translated as there.
eg
 Tu vas à l'école aujourd'hui? [Are you going to school today?]
    Tu y vas aujourd'hui? [Are you going there today?]

 Nous étions chez Pauliune. [We were at Pauline's place]
    Nous y étions. [We were there]

NOTE :  In English, there can be often omitted, but y can never be omitted in French. eg
 Tu vas à la banque aujourd'hui? - Non, j'y vais demain.
    [Are you going to the bank today? - No, I am going (there) tomorrow]

Y REPLACING AN INANIMATE OBJECT                        

With certain verbs** y replaces the preposition à when its object is an idea or a thing, but not a person.
Y is usually translated as it.
eg
 Je réponds à une lettre. [I'm responding to a letter]
    J'y réponds. [I'm responding to it

 Je pense à notre voyage. [I'm thinking about our trip]
    J'y pense. [I'm thinking about it.

NOTE: When these verbs are followed by a person, pronom tonique will be used:
 eg Je pense à ma sœur. - Je pense à lui.

NOTE: Y usually cannot replace à + verb.
 eg J'hésite à dire la vérité. [I hesitate to tell the truth]
         J'hésite à la dire. [I hesitate to tell it]

NOTE: Y is found in the exprerssion il y a.

PLACEMENT OF Y                                                  

Y precedes the verb it refers to except in affirmatif impératif, where it comes after the verb.
   eg.  Allons-y!   [Let's go there!]

NOTE : In négatif impératif, y precedes the verb.
  N'y allons pas!  [Let's not go there!]