Home networks can be set up with or without Internet access, using various combinations of computer hardware and software.

The benefits of networking (either wired or wireless) in homes are:

• file sharing - Network file sharing between computers gives you more flexibity than using CD/DVD drives or Zip drives. Not only can you share photos, music files, and documents, you can also use a home network to save copies of all of your important data on a different computer. Backups are one of the most critical yet overlooked tasks in home networking.
• printer / peripheral sharing - Once a home network is in place, it's easy to then set up all of the computers to share a single printer. No longer will you need to bounce from one system or another just to print out an email message. Other computer peripherals can be shared similarly such as network scanners, Web cams, and DVD burners.
• Internet connection sharing - Using a home network, multiple family members can access the Internet simultaneously without having to pay an ISP for multiple accounts.
• multi-player games - Many popular home computer games support LAN mode where friends and family can play together, if they have their computers networked.
• home entertainment - Newer home entertainment products such as digital video recorders (DVRs) and video game consoles now support either wired or wireless home networking. Having these products integrated into your network enables online Internet gaming, video sharing and other advanced features.