Module 2: Installation

🧠Understanding Claude Code: Three Ways to Talk to Claude

Before we install anything, let's understand what Claude Code actually IS.

You've probably used apps in three different ways. Let's map Claude to those experiences to build a clear mental model.

Click each panel to explore the analogy and see how it relates to Claude.

📱 Phone App

Tap & Swipe Interface

💻 Desktop App

Click & Type Interface

🔌 API Tool

Connect & Automate

Way 1: The Phone App (What You Already Know)

You interact through buttons and screens, and the result appears instantly. The Claude equivalent is the claude.ai website: a visual, chat-based interface where your browser sends a message and gets a response. It's great for conversations and summarizing pasted text.

claude.ai Claude: Compound interest is when you earn interest on both your initial investment and the interest it has already earned. It's like a snowball effect for your money, growing faster over time.

Way 2: The Desktop App (Also Familiar)

This is software installed ON your computer that works with files ON your computer (like Microsoft Excel). While there's no direct Claude equivalent, this is the feeling of Claude Code. You type commands, and it makes changes to your local files.

Excel - Spreadsheet A B 100 200 300 600 You type a formula... ...and Excel calculates instantly on YOUR computer

Way 3: The API Tool (The New Concept)

This is when one tool sends a request to an external service for data. A weather widget on your blog is a perfect example. This is what Claude Code is! Your terminal sends a request to Claude's AI brain on Anthropic's servers, gets a response (the code), and then uses that response to change your local files.

Terminal (Your Computer) + button.html + <button>Click Me</button> Approve ✓ REQUEST RESPONSE Anthropic Servers (Claude's AI Brain) 🧠 Processing your request... "Add a button" Generated Code: <button style="padding:10px"> Click Me </button> Ready to send back →

🎯 Map Your Understanding

Drag each item to the category that best describes its interaction style.

📱

Phone App Style

Tap & Swipe

💻

Desktop App Style

Click & Type

🔌

API Tool Style

Connect & Automate

🌐 claude.ai website
⚡ Claude Code in VS Code
📊 Microsoft Excel

🧩Knowledge Check

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Q1: Claude Code is best described as what?

💲Usage & Licensing Overview

How access works

Perfect for small teams: Claude Code runs locally on your computer and connects securely to the Claude API. Whether you're a solo consultant or a 5-person team with a $20/month budget, you get the same powerful capabilities as enterprise teams.

💰 Budget-Friendly: No enterprise licensing required. You pay only for what you use through token-based pricing. A typical small team might spend $10-30/month on actual AI usage, making it accessible even for bootstrapped consultancies.

No hidden costs: Editing sessions inside your IDE are not billed per token directly. You only pay for the AI processing when you actually use it.

🚀 Same Power, Any Team Size: Whether you're a solo financial consultant or part of a 50-person firm, you get access to the same Claude AI capabilities. The difference is only in how you manage access and billing, not in the features available to you.

Seats & Workspaces

  • Individual or team seats managed via Anthropic console
  • Organization policies for data handling and retention
  • Centralized billing and usage visibility

Practical guidance

  • Start with small, focused edits and review diffs
  • Use CLAUDE.md to minimize repeated instructions
  • Check admin console for usage reports when needed

⌨️Command Cheat Sheet

Editing commands

Today you can ask Claude to edit files with free‑form requests or explicit verbs. Both styles are supported and may converge over time:

  • claude "edit this file: add a button to index.html"
  • claude edit index.html "add a button"
Command What It Does Example

Before → After (Preview)

Before: <h1>Hello</h1>

After: <h1>Hello</h1> + new button added

Bad vs Good Prompt

  • Bad: "fix it"
    Too vague. No file, no intent.
  • Good: "In index.html, add a blue 'Contact Us' button below the title; inline styles OK."
    File, change, placement, constraints.

Prompt‑review checklist

  • Accuracy: Does the diff match your intent?
  • Clarity: Is the request specific (file, location, behavior)?
  • Scope: Is the change minimal and reviewable?
  • Safety: Any secrets, credentials, or risky edits?
  • Readability: Names, comments, and formatting solid?

⚙️Setup & Installation — Quick Start

⏱️ Time needed: 10-15 minutes | 📚 Experience required: None — we'll guide you through every click!

Step 1: Find and Open Your Terminal

What is a Terminal? Think of it as a text-based way to talk to your computer. Instead of clicking icons, you type commands. Don't worry — we'll tell you exactly what to type!

🍎 On Mac:
  1. Click the magnifying glass icon (top-right corner)
  2. Type: Terminal
  3. Press Enter
  4. A black or white window opens — that's your Terminal!
🪟 On Windows:
  1. Click the Start menu (Windows icon, bottom-left)
  2. Type: PowerShell
  3. Click Windows PowerShell (blue icon)
  4. A blue window opens — that's your PowerShell!

✅ You'll know it worked when: You see a window with text and a blinking cursor waiting for you to type.

Step 2: Check If You Have Node.js (Required Foundation)

What is Node.js? It's free software that helps run modern programs like Claude Code. Think of it as the engine that makes Claude Code work. You need this first.

📝 Copy this command to check if you already have it:

node --version

Paste it in your Terminal/PowerShell and press Enter.

✅ If you see something like: v18.17.0 or a similar number — Great! You have Node.js. Skip to Step 3 below.

⚠️ If you see: command not found — You need to install Node.js first. Follow these steps:

📦 Installing Node.js (One-Time Setup)

  1. Visit nodejs.org in your web browser
  2. Click the large green "Get Node.js®" button
  3. The installer downloads to your Downloads folder (30-60 seconds)
  4. Find and double-click the installer file (node-v22-x64.msi on Windows or node-v22.pkg on Mac)
  5. Follow the wizard — keep clicking "Next" then "Install"
  6. If Windows asks permission, click "Yes"
  7. Wait 2-3 minutes for installation
  8. Click "Finish" when done
  9. Close and reopen your Terminal/PowerShell completely
  10. Run node --version again — you should now see a version number like v22.20.0

Step 3: Install Claude Code

What you're doing: Now that Node.js is installed, you can download and install Claude Code, just like installing Microsoft Word or Excel.

📝 Copy this command exactly as written:

npm install -g @anthropic-ai/claude-code

Now do this:

  1. Right-click inside the Terminal/PowerShell window
  2. Choose "Paste" (or press Ctrl+V on Windows, Cmd+V on Mac)
  3. Press Enter
  4. Wait 1-3 minutes — you'll see text scrolling. This is normal! The computer is downloading files.

📖 What You'll See:

✅ Success message: changed 2 packages in 18s or added 2 packages — The installation worked!

✅ Funding message: 1 package is looking for funding — Ignore this completely. It's just asking for donations.

✅ Security message: found 0 vulnerabilities — Nice! The software is safe.

💡 Key point: As long as you see "changed 2 packages" and your cursor is blinking with no red "ERROR" text, you're done!

✅ Success looks like: You see "added 2 packages" and your cursor is blinking again with no red "ERROR" text.

Step 4: Close and Reopen Your Terminal (Important!)

Why? Your computer needs to "refresh" to recognize the new program you just installed. Think of it like restarting after a software update.

How to do it:

  1. Close the Terminal/PowerShell window completely (click the X button)
  2. Open it again:
    • 🍎 On Mac: Click the magnifying glass icon → Type Terminal → Press Enter
    • 🪟 On Windows: Click the Start menu → Type PowerShell → Click Windows PowerShell
  3. You should see a fresh window with a blinking cursor — ready for the next step!

Step 5: Log In to Claude

What you're doing: Connecting your computer to your Claude account, like logging into Gmail or Netflix.

📝 Copy this command:

claude auth login

Then:

  1. Paste it into the Terminal/PowerShell (right-click → Paste)
  2. Press Enter

⚠️ Screen 1: Security Confirmation (Don't Panic!)

You'll see a message asking "Do you trust the files in this folder?" This is a normal security check.

✅ What to do: Press Enter to select "1. Yes, proceed"

🌐 Screen 2: Browser Login (First-Time Users)

Your web browser will open automatically. Sign in with your Anthropic/Claude account (or create one if you don't have it). After login, close the browser tab and return to Terminal.

💡 Tip: If you use claude.ai, it's the same account!

🎉 Screen 3: Welcome to Claude Code!

You'll see a welcome message with your name and a blinking cursor > █ — Claude is ready for your instructions!

💬 Try your first command: Type something like tell me a joke about spreadsheets or what folder am I in? and press Enter. Claude will respond!

✅ To exit: Type exit and press Enter, or close the Terminal window.

Step 6: Verify It's Working

Let's make sure everything is set up correctly!

📝 Copy this command:

claude --version

What you should see: claude-code version 1.2.3 (numbers may vary)

🎉 Congratulations! You're Ready! If you saw the version number, Claude Code is successfully installed and authenticated.

❌ Didn't work? If you see "command not found", go back to Step 4 and make sure you closed and reopened your Terminal.

💪 You Just Did Something Amazing!

You opened the Terminal (maybe for the first time!), ran commands, and installed professional AI software. That's not "tech stuff" — that's real capability. You're now equipped to use AI tools that most consultants only dream about.

🎯Installation Checkpoint — Test Your Understanding

You just completed the installation! Before moving forward, let's make sure you understood the key concepts. This will help you feel confident using Claude Code.

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💡3 Key Tips for This Stage

Don't Confuse claude.ai with Claude Code

The website (claude.ai) is for chatting. The terminal tool (Claude Code) is for working with your files. They are separate and use different interfaces.

Local tool, secure cloud intelligence

Claude Code runs locally and connects securely to the Claude API for intelligence. Your files remain on your machine; you review all diffs and approve before anything is written.

Keep Your API Key Like a Password

Store your API key in a password manager. Do not share it, and never save it in a public place like a GitHub repository.

🧠Reflection Questions

  1. Which mental model clicked for you? The Phone App, Desktop App, or API Tool style?
  2. What concerns do you have about the API approach? Are you worried about what gets sent over the internet?
  3. How does the "request → response" pattern of an API feel similar to or different from tools you already use?

❓Common Questions

📚Glossary

🪜What You Learned & What's Next

Where you are now:

You understand the mental model of how Claude Code works as an API tool and you have a step-by-step plan for installation.

Where you're going next:

In Module 3, you'll use your newly installed Claude Code to make your first real change to a file and learn the critical "review and approve" workflow.

💡 For VS Code Beginners: If you just installed VS Code, look for the Claude icon (👤) in the left sidebar to open the chat panel. Module 3 will walk you through every step!

Continue to Module 3: Your First Real Change