Each registered user is assigned a home directory. This ensures that files that are created by the various users of the system can be distinguished from one another. Placing all the files that belong to a particular user into their home directory allows the operating system to distinguish that particular user's file called stuff from any other file with the same name.
The name assigned to your home directory is the same as your login name. It is within your home directory that you will create and manipulate your own files and directories.
Your home directory may exist anywhere on our system, but it can always be referred to as /home/
Most shells also use the tilde character (~) to refer to a home directory. ~/file will be in your home directory; ~zorro/otherfile is in Zorro's home directory.