Home Application Folder

Hi all,
It has recently just dawned on me that I not only have an Applications Folder, but an Application Folder in my Home Folder as well!! What exactly is this for?
I have only ever used the Applications Folder that all my apps get stored in automatically. My Home Application Folder has always been empty. I have two accounts on my MacBook, one for me and one for my wife. Mine is an Admin account, her's is a Standard account. I recently installed software for her TomTom sat nav on her account. Instead of putting the app in the main Applications Folder with everything else, it stored it in her Home Applications Folder. It is the only thing in that folder. Why would it do this? I do not remember it asking if the app was only for one user (even though it is!!). Obviously, when I log into my account, that tomtom app is not present in the Applications Folder because I assume it is in her Home applications Folder.
Why has this happened when every other app installed went automatically into the main Applications Folder? What exactly is the Home Applications Folder for and should I be using it?? Lastly, how do you install app's to the Home Application Folder instead of the Main Applications Folder if you want too? These are probably stupid questions, but are questions that would help me understand OSX much better!!
Please help!!
Thanks for the advice.
Regards,
Lucky

The difference, as you have noticed, is that items in a user's ~/Applications folder can only be accessed by that user. Application installers usually default to the main Applications folder, but you can install in pretty much any location (although the recommended location is one of the Applications folders). The installer may also provide a 'choose location' option for the install, and if installing from a disk image you can drag the application to your folder of choice.
Installing an application into the main /Applications folder (note that this requires admin access) makes them available to all users, but there may be cases where you want to restrict the access to a specific user, or just don't want to make it available to everyone. Also, a user can install applications into their own account if they don't have admin access to install to the /Applications folder - it just depends on the preferences of the user (or the admin). Personally, I use my user ~/Applications folder for script applications and for trying out new stuff.

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