What is best to have it turned on or off?

Hello,
I have installed Mountain Lion and all works well.
I am not sure as to how the Firewall was set up prior to my installing Mountai Lion OS.
I now see under Security & Privacy the Firewall is marked as Firewall: Off. Mine is a Mac Book Air access internet over my home WiFi wireless network. My WiFi is password protected.
Do I have to keep the FireWall in my Mac Book Air set "ON" or is it alright to leave it as at present-Off?
Regards

Yes I do have my WiFi Router and my Mac Book Air is connected wireless.
So it may be over cook to turn on the FireWall. Having said that, I have just turned it on eralier after reading previous response. I have not noticed any diffeerence in the speed or behaviour of my Mac Book Air.
I will leave it on to observe/learn if any difference when I am using my Mac Book Air and if I find any slowing or problem in visiting certain sites, I could turn it off knowing from your response that the Router firewall is there to act against any malicious activity.
Thank you for your very helpful answer.
Regards

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