Go back to the sandbox at recess - kind of like that
Shared hosting is the sandbox that all of the kids play in. The most budget-friendly hosting type, giving you plenty of room for a new website, or site with lower traffic. Great for startups, blogs, and smaller websites.
VPS (i.e. Virtual Private Servers) hosting is the sandbox you went to when you wanted alone time. It provides extra space for growing websites and also better performance and added security benefits. This is a bit more expensive and ideal for businesses needing a bit more for a growing website.
Dedicated hosting is the sandbox that nobody else knew about. This is for high-traffic websites, enterprises, and other resource-intensive applications. This is considerably more expensive, but also the ideal solution for when your website takes off.