You better believe understanding the difference and how your hardware and software operates is the key to success because they work together to allow you to perform the wide variety of functions possible on your personal computer. It's actually pretty simple -- "hardware" refers to all of the physical pieces of equipment, like your mouse, your computer's screen (or monitor), the hard drive, etc. "Software" is all of the parts of the computer that you can't really see or touch. Software would include things like Microsoft Word, your email program, Windows or the Mac OS, plus all of your personal files like letters, photos, music, and more.

Hardware is the actual body of the computer system, comprising the system unit and all the elements that you can plug into it, such as your keyboard. Your computer's hardware determines which type of operating system you can use. Lets say you have an Intel Processor operating system but your system cannot run the Apple Macintosh operating system. Software is the thinking part, or brain of your computer which put all the hardware to work. The most important piece of software on your computer is the operating system.

By translating your instructions into a language the hardware can understand, the operating system lets you communicate with various computer parts and control how the computer and its accessories work. An operating system is so important to the workings of a computer that, without one, you cannot open any files, use a printer or see anything on the screen.

However, in order to perform specific functions, such as editing a report, playing a computer game or keeping a check on your household spending, your computer also needs to use specialized software called programs. There are thousands of programs available, each designed to perform different kinds of tasks. Programs enable you to do anything from writing formal letters and compiling spreadsheets to editing digital imagery and even making your own films. Here are a few more programs that you can have on your personal computer:

- Financial Programs. Can be use for calculating household expenditure. This will enable you to keep a check on your domestic bills, monitor your expenses and work out your overall balance, enabling you to manage your money effectively.

- Word Processing Programs. Can be use to write letters, reports and any other documents that mainly text based.

- Graphic Programs. If you need to work with pictures, this is your program. This will help you to create greetings cards, invitations, posters and personal stationery.

- Database Programs. You will want to make out an address lists, or list of contact details.

- Spreadsheet Programs. For making serious budget calculations and carrying out financial analysis. These programs can also show figures as a chart or graph.

- Games Programs. When you play games this is an entertaining way of becoming more adept on the computer. You usually have to buy each game program separately, although some systems come with some simple games included.

You must remember, when you're storing software on your hard disk, whether it be the operating system or programs, uses storage space on your hard disk. The storage space is measured in terms of bits and bytes. Understanding what software and hardware does will help get the most out of your personal computer.