How does iCloud work? I find it confusing (I'm the complete opposite of tech savvy)

Mainly, I'm confused about backups. (FYI I have an iPhone 5s running on iOS version 7.1.2) How do I know if my phone is automatically backing up or not? Also, if I have already backed up my phone to iCloud, when I back it up again, if I have deleted things since the last backup (texts, photos, apps, contacts, whatever) are those deleted items still saved in the iCloud, or does the new backup replace the old one? Is there a way to delete things that I don't want saved to the cloud anymore? I already looked at the help topics and stuff online but still don't quite understand it all. Apple's wording just doesn't make sense to me. Any tips and tricks for using the clould and how it works are greatly appreciated.

There are a couple of ways of seeing whether it is automatically backing up.
Settings > iCloud > Backup will show the date of the last backup to iCloud
Settings > General > Usage > Manage Storage (in the iCloud section, not the Storage section) > device name > shows the date and size of the latest backup.
A restore is all or nothing and will restore what was on your phone as of the last backup. You can delete the entire backup if desired by going to Settings > General > Usage > Manage Storage (in the iCloud section, not the Storage section) > device name and scroll to the bottom of the screen.

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