The basic postulate is this: the description of a system is the set of probability amplitudes for each possible result of measurement of the system.
If a classical system consists of two subcomponents, each of which can admit N possible results of measurements, then we can describe the system with 2N values.
On the other hand, if a quantum system consists of two subcomponents, each of which can admit N possible results of measurements, then we need N x N values, one for each possible combination of single system outcomes.
Imagine a system composed of two distinguishable balls each of which are red, green, or blue. We could, for instance, specify the state vector of one ball as these probability amplitudes:
Red = 0.70
Green = 0.57
Blue = 0.41
so that the probabilities (the squared probability amplitudes) of each color are red, 0.5; green, 0.33; blue, 0.17.
For the two ball system, the classical description would simply consist of three amplitudes for each ball.
But in QM, in order to specify the state of the two ball system we would need to specify a value for each of the 3 x 3 = 9 combinations of outcomes, for example:
red, red = 0.33
green, green = 0.33
blue, blue = 0.33
red, green = 0.33
green, red = 0.33
red, blue = 0.33
blue, red = 0.33
green, blue = 0.33
blue, green = 0.33