The soul is misunderstood by most people.
The soul is more like a non permanent dynamic dna on the energy contained in your body. Or maybe I should compare it to an unreliable harddrive.
You emotions and knowledge an experiences etc all gets recorded to this energy. But, like we all know, energy enters and leaves our bodies constantly (You eat to get more, and use some when you go to gym). This causes some of this recorded information to get lost. With some focussing this can be lessened though.
This is a simple and quick explanation, but I hope it can give you some clarity.
How does this relate to everyday situations?
Energy never gets lost. It is transferred or altered though. Taking this can lead to some religions' interpretation of an afterlife.
Reincarnation is also possible through the soul if one person's energy remains "close together" after death and is transferred to another person.
This is also why some twins can sense the other's feelings. They have shared the same energy in the womb and are then able to "recognise" the released energy from the other after birth.
And many more ...
Edit: so yes, every living thing has a "soul".