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Organising Files and Folders
Files are organized on your computer in folders. If it helps, think of your computer as a filing cabinet.
There may be drawers that group information or paperwork, e.g. one drawer for household items, another for personal items and so on.
Inside the drawers there are dividers for sub groups such as gas, electricity, insurance etc in the household drawer. The personal drawer might contain details about holidays, certificates, letters etc.
Inside the dividers there will be the information or paperwork, which could even be sub-divided in paper folders. The permutations are endless and you are only constricted in the number of files and folders you have by your computer's available storage space.