If you stretch a rubber band, you will give it potential energy. As the rubber band is released, potential energy is changed to motion. Kinetic energy is energy of motion. A rubber band flying through the air has kinetic energy. When you are walking or running your body is exhibiting kinetic energy.
Potential energy is converted into kinetic energy .
Before the yo-yo begins its fall it has stored energy due to its position. At the top it has its maximum potential energy. As it starts to fall the potential energy begins to be changed into kinetic energy. At the bottom its potential energy has been converted into kinetic energy so that it now has its maximum kinetic energy. A waterfall has both potential and kinetic energy.