Self-esteem refers to how people feel about themselves and their level of competence. The document discusses that self-esteem determines how people interact with others and their goals, achievements, and satisfaction in life. Healthy self-esteem is related to traits like creativity, rationality, and honesty. The document provides tips for building self-esteem such as focusing on strengths, celebrating progress, and avoiding negative self-talk. Maintaining high self-esteem leads to benefits like confidence and respect for oneself and others.