Every organism has a both a habitat and a niche. 

A habitat is the physical environment an organism lives in. It includes all of the biotic and abiotic factors. When you think of habitat think of where an organism lives.

A niche is related to the habitat, but includes the things that a species needs to survive, stay healthy, and reproduce. When you think of niche think about how an organism lives. 

Before moving on, watch the Survive within a Niche animation.