Mnemonic devices are tools used to help people remember information. They often take the form of acronyms, rhymes, or other phrases that are easy to remember. The term 'PEGS' is an acronym for 'Phonetic Mnemonic Encoding System, ' which is a type of mnemonic device that uses words that sound similar to the words they represent. This system helps people remember information by associating it with words that sound similar.