A home directory is a file system directory on a multi-user operating system containing files for a given user of the system. The specifics of the home directory (such as its name and location) is defined by the operating system involved; for example, Windows systems between 2000 and 2003 keep home directories in a folder called Documents and Settings.
A user's home directory is intended to contain that user's files; including text documents, music, pictures or videos, etc. It may also include their configuration files of preferred settings for any software they have used there and might have tailored to their liking: web browser bookmarks, favorite desktop wallpaper and themes, passwords to any external services accessed via a given software, etc. The user can install executable software in this directory, but it will only be available to users with permission to this directory. The home directory can be organized further with the use of sub-directories.
The content of a user's home directory is protected by file system permissions, and by default is accessible to all authenticated users and administrators. Any other user that has been granted administrator privileges has authority to access any protected location on the filesystem including other users home directories.