Environtment Variables - the environment is an area that the shell builds every time its starts a session. Environment variables are those that define system properties and allow programs to function correctly. They are available to any child process of the shell. EX: SHELL = /bin/bash (name of shell we are using) HOME = /u/eu/dl/kellarso (your home directory) Local Variables - variables that are only present in the current instance or session of the shell. These can be set at the command prompt and are not accessable to child processes. EX: NAME="Kellyn", variable named NAME has value of NAME unset NAME, delete variable readonly NAME, make variable read only so that it cannot be deleted or set to a different value echo $NAME, the $ symbol is needed in order to expand variable to its value