Choosing home wireless security settings

TL;DR:  Choose WPA2-PSK with AES encyption for home use.  Choose an ASCII encryption key with a made up phrase, like "I live at 1234 Main in California".  Disable WPS if possible.

When setting up a new wifi router, you have to choose how to set up your wireless security settings.
WPA2 AES is good;  WPA is mediocre.  Everything else offers minimal security as software to break the encryption in a few days or even hours exist for WPS (which does a poor job of setting up WPA/WPA2) and WEP.

Home settings

For WPA and WPA2, the home variants are referred to as "PSK" or "Personal".
Here's a run down of the various choices without any of the techno babble.

Grade	Protocol	Variant	Encrypt	Thoughts
A	WPA 2	PSK/Personal	AES	The best choice.
B	WPA 2	PSK/Personal	TKIP	Not as good as AES
C+	WPA	PSK/Personal	AES	Better than WEP
C-	WPA	PSK/Personal	TKIP	Better than WEP
D+	WPS			Most routers are flawed. Disable if possible.
D-	WEP	64/128 bit		AVOID, WEP has been cracked.
F	None			Publically announce everything you do.

Enterprise or Corporate settings.

There are also wireless security choices where there is a centralized key server, namely for companies or enterprises. These go by the name "Enterprise" or "Radius" or "802.1x". Confusingly, note that plain "WPA2" and "WPA" typically refer to the enterprise variants.

N/A	WPA 2	""/Enterprise/Radius	Not for home use
N/A	WPA	""/Enterprise/Radius	Not for home use