For the average home-user, anti-virus software is a must. A personal firewall such as Zone Alarm and running a program like HFNetcheck, which is a free download for personal users. It checks your system to see if anything needs to be patched. I'd also recommend a program such as SpyCop to periodically check for any spyware on your system.
What happens with smaller businesses is that they give in to the misconception that their site is secure because the system administrator deployed standard security products - firewalls, intrusion detection systems, or stronger authentication devices such as time-based tokens or biometric smart cards. But those things can be exploited.
Somebody could send you an office document or a PDF file, and as soon as you open it, it's a booby trap and the hacker has complete control of your computer. Another major problem is password management. People use the same password on multiple sites, so when the hacker compromises one site, they have your password for everywhere else.
I started with CB radio, ham radio, and eventually went into computers. And I was just fascinated with it. And back then, when I was in school, computer hacking was encouraged. It was an encouraged activity. In fact, I remember one of the projects my teacher gave me was writing a log-in simulator.