Making a link for my wordpress front page?

[weboncloud]

I'm building a wordpress theme for my website. I notice that in the dashboard's reading options, my front page displays my latests post which is exactly what i want. I want that to be my homepage. How do i offer my wordpress website users the option to go to the homepage?

I'm asking this because this is the template tag that i used to list my pages:

<div id="nav">
      <ul>
           <?php wp_list_pages('title_li='); ?>
      </ul>
</div><!-- end of div with id nav -->

Now after adding this, i notice that i have an About page. I want to create a page called Home (and make it my front page that displays my latests posts), just like sitepoint's .

How do i do that? I know how to create pages but how do i make that the page that opens up when people go to the url and how do i make that homepage display the latests posts?

Thank you all for reading this.