Managed resources are resources that the runtime's garbage collector is aware and under control of. There are many classes available in the BCL, for example, such as a SqlConnection that is a wrapper class for an unmanaged resource. These classes already implement the IDisposable interface -- it's up to your code to clean them up when you are done.

It's not necessary to implement a finalizer if your class only contains managed resources.

public class ObjectWithManagedResourcesOnly : IDisposable
{
    private SqlConnection sqlConnection = new SqlConnection();

    public void Dispose()
    {
        sqlConnection.Dispose();
    }
}

It's important to let finalization ignore managed resources. The finalizer runs on another thread -- it's possible that the managed objects don't exist anymore by the time the finalizer runs. Implementing a protected Dispose(bool) method is a common practice to ensure managed resources do not have their Dispose method called from a finalizer.

public class ManagedAndUnmanagedObject : IDisposable
{
    private SqlConnection sqlConnection = new SqlConnection();
    private UnmanagedHandle unmanagedHandle = Win32.SomeUnmanagedResource();
    private bool disposed;

    public void Dispose()
    {
        Dispose(true); // client called dispose
        GC.SuppressFinalize(this); // tell the GC to not execute the Finalizer
    }

    protected virtual void Dispose(bool disposeManaged)
    {
        if (!disposed)
        {
            if (disposeManaged)
            {
                if (sqlConnection != null)
                {
                    sqlConnection.Dispose();
                }
            }

            unmanagedHandle.Release();

            disposed = true;
        }
    }

    ~ManagedAndUnmanagedObject()
    {
        Dispose(false);
    }
}

.NET Framework defines a interface for types requiring a tear-down method:

public interface IDisposable
{
  void Dispose();
}

Dispose() is primarily used for cleaning up resources, like unmanaged references. However, it can also be useful to force the disposing of other resources even though they are managed. Instead of waiting for the GC to eventually also clean up your database connection, you can make sure it's done in your own Dispose() implementation.

public void Dispose()
{
   if (null != this.CurrentDatabaseConnection)
   {
       this.CurrentDatabaseConnection.Dispose();
       this.CurrentDatabaseConnection = null;
   }
}

When you need to directly access unmanaged resources such as unmanaged pointers or win32 resources, create a class inheriting from SafeHandle and use that class’s conventions/tools to do so.

It's fairly common that you may create a class that implements IDisposable, and then derive classes that also contain managed resources. It is recommendeded to mark the Dispose method with the virtual keyword so that clients have the ability to cleanup any resources they may own.

public class Parent : IDisposable
{
    private ManagedResource parentManagedResource = new ManagedResource();

    public virtual void Dispose()
    {
        if (parentManagedResource != null)
        {
            parentManagedResource.Dispose();
        }
    }
}

public class Child : Parent
{
    private ManagedResource childManagedResource = new ManagedResource();

    public override void Dispose()
    {
        if (childManagedResource != null)
        {
            childManagedResource.Dispose();
        }
        //clean up the parent's resources
        base.Dispose();
    }
}

When an object implements the IDisposable interface, it can be created within the using syntax:

using (var foo = new Foo())
{
    // do foo stuff
} // when it reaches here foo.Dispose() will get called

public class Foo : IDisposable
{
    public void Dispose()
    {
        Console.WriteLine("dispose called");
    }
}

View demo

using is syntatic sugar for a try/finally block; the above usage would roughly translate into:

{
    var foo = new Foo();
    try
    {
        // do foo stuff
    }
    finally
    {
        if (foo != null)
            ((IDisposable)foo).Dispose();
    }
}