use for admission, fast pass rides, hotel key (if staying on property), etc. If you pre-purchase your meals, you just use the wristband to pay for your food. I think we did whatever plan was 2 meals per day plus a snack per person. It can be used in your hotel or any of the parks. Whenever you purchase some food, your receipt will tell you how many meals and how many snacks you have left. I don't remember the specifics, but most of the meals included an entree, drink and dessert counting for one meal.
Even at only 2 meals per person, we ended up buying a bunch of non-perishable snacks to bring home because we had extra left. But I think the biggest benefit to me was just not stressing about food once we were in the park.