One other thing that Windows 95 introduces is the Briefcase. The briefcase allows you to put files in from another folder, and then transfer them to another PC and synchronize them with the files that are on that other PC.

File Management in Windows 95 is now done using the Explorer. Each folder you click on opens in a separate window, typically in a cascade to prevent from covering up the parent window, but you can move them all over the place like you would any other window.
Files can be browsed in Large or Small Icons, a List, or Details view.

Windows hides file extensions, as well as system files, by default, in an attempt to look more like the Mac OS which stores file type information inside the file system.

Also new in Windows 95 are Shortcuts. A shortcut is sort of like a Mac OS Alias, except more crude. A shortcut links to another file, and when the shortcut is clicked the Explorer automatically opens the linked file. Shortcuts can be made of anything that appears as an icon in the Explorer.

One thing lacking in Windows 95 is any default places to put your files. Other than the desktop and Recycle Bin...leading to some possibly strange ideas about where to store important documents!

Lacking in Windows 3.1 was any place to store files before deletion. If you wanted to delete something you had better make sure that the thing you are deleting is the right thing, or else you better have backups.
Windows 95 introduces the Recycle Bin, which brings the Trash from Mac OS now to Windows.

It is also possible to browse folders within the same window as the parent. Windows 98 and later default to this.
Exploring a folder displays a directory tree on the left, similar to the old File Manager.