Lastpass

LastPass is a free password manager (premium version also available).  This sounds so unexciting, but it is a powerful tool.  I allows you to securely maintain all of your Internet passwords in one database.  The end result is that you can log into all of your websites by just remembering one master password.
LastPass is a browser plugin that installs very easily from the LastPass website.  It works on all major web browsers.  Once the plugin is installed, LastPass automatically recognizes websites you encounter that requires a username and password.  When you enter your username and password, LastPass asks you if you would like to remember the login details.  If so, LastPass stores the information in your ‘vault’ and you can now login with your single LastPass master password.
The following video briefly illustrates how LastPass works.

LastPass Instructions

Since there are so many cool Web2.0 tools, many people use the same username and login for numerous websites.  This is a bad idea from a security perspective.  If someone finds out your password on one site, they potentially have your password for all of your sites that use the same password.  By using one master password to access LastPass, you don’t have to remember numerous login information from various websites.
When you encounter a new website and your are required to create a password, LastPass typically automatically detects this and prompts you to use an automatically generated strong password.  If you use this feature, the end result is that you have a unique password for each website that is a long string of random characters, numbers, and symbols.

How secure is it?

This is a great question that I am sure people are thinking.  Just like any password, if you keep your master password written on a sticky on your laptop, then the answer is ‘not very secure’.  The security of the master password is critical.  It should be long, include numbers and symbols, and include lower- and upper-case letters.  It should also not be any word that is found within a dictionary.
The actual LastPass database that contains all of your website passwords is encrypted based on your password.  The bad news is that if you use your password, you are out of luck (LastPass does have a one time provision for this).  The good news is that no one is able to see your individual passwords without knowing your master password.  In an interview with one of the LastPass executives, it was made clear that not even LastPass employees could access your passwords, or anyone hacking their database (approximately minute 9:00)
.LastPass Interview by user4752733

Use in an educational environment:

Since more and more teachers and students are creating accounts online, managing passwords becomes a practical issue.  I personally think that managing passwords also becomes one of those core computer/technology skills that we need to instruct, just like teaching how to add an attachment to an email.  The result is that teachers and staff become more aware of security and their online data and profiles are less likely to be compromised.
If everyone within a school district used LastPass, the number of calls to the tech department to reset passwords would be drastically reduced.  Additionally, the tech department would not need to reset numerous passwords when a teacher’s index card full of passwords mysteriously disappears.  Students would also not have the same phenomenon of losing their notebook with all of their passwords and finding out that a peer hacked into their accounts.  
Probably the biggest difficulty would be to convince everyone to use LastPass.  Many people already have different systems (mental, pencil/paper, etc.) for remembering passwords.  To successfully use LastPass, all of these passwords should be entered into LastPass.  If LastPass is installed, the user is prompted if they would like to add the password to LastPass each time a new website login in encountered.  However, some people may continue to use other methods.

How-to Material:

The LastPass support website has many materials geared for installing, using, and troubleshooting LastPass.  This includes FAQs and screencasts.  There is also a user forum to discuss various issues.

Other Features:

LastPass has additional features that make it useful.  It is a cloud-based system, so it is not tied to one computer.  This makes it very useful in a school setting.  There is also an ability to add secure notes.  This could be credit card numbers, bank accounts, or a teacher’s PPID.  LastPass also has security test that tests the overall security of your accounts passwords.  This is very useful if you are interested in the security of your existing accounts.