Since we already discussed the difference between their, there, and they're in a previous lesson, perhaps it is good to also cover another common point of confusion: the words it's and its. Even native speakers get these words mixed up, so master them and you will be ahead of the game. 

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We are used to recognizing possessives by the use of an apostrophe, for example, my mother's car or the teacher's classroom. However, the word it's is not possessive, but rather a contraction of it and is used for convenience. In the sentences below, we see shortened versions of it is amazing, it is really exciting, and it is the most important part. 

And it's amazing, and they have one of the best sunsets in the world.

Caption 25, Visit Isle of Wight - Mark King of Level 42

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It's really exciting to know that I'm setting a good example for young people

Caption 26, peta2 Interviews - Vegan Surfer Tia Blanco

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That's how we know it's the most important part.

Caption 34, Rachel's English - How to Introduce Yourself - American English Pronunciation

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The word its helps us to describe how something belongs to, for example, an animal, place, or object. The sentences below are about the bear's fur, the garden's street performers, and the vest's container. 

Its fur is almost silver with a blue sheen,

the perfect adaptation to its environment.

Captions 19-20, Nature & Wildlife - Search for the Ghost Bear

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Covent Garden is famous for its street performers.

Caption 3, Christmas in London - Places

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To use, pull the tab to remove the vest from its container

and then open the pouch.

Captions 69-70, Delta Airlines - In-Flight Safety Video

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So, as you can see, “it’s” with an apostrophe is the contraction for “it is” and is never a possessive, while “its” with no apostrophe can only be a possessive and is never the contraction for “it is”.

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Further Learning
Take special note of examples of it's and its that you see while watching videos on Yabla English. Almost every video has one or both! 

Homonyms are words that sound the same, but are spelled differently and have different meanings and usages. This can be confusing sometimes as one must rely on context to figure out which word is meant or should be used. 

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Even native speakers sometimes fail to use the homonyms "there," "their," and "they're" correctly. Here is a quick review of which one is appropriate for which occasion. 

1) The word "there" is used to refer to a physical or abstract location.

When I flew in on the float plane, they were all there on the boat.

When I flew in on the float plane, they were all there on the boat.

Caption 4, Alaska Revealed - Endless Wave

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Also, it is commonly combined with a conjugation of “to be” or a modal verb to discuss the existence of something.

For everywhere we look, there is work to be done.

For everywhere we look, there is work to be done.

Caption 28, Barack Obama's Inauguration Day - Obama's Speech

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I think there must be something wrong with me, Linus.

I think there must be something wrong with me, Linus.

Caption 9, A Charlie Brown Christmas - Opening

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2) "Their" is a possessive adjective used before a noun when the subject is "they." With "their," we are speaking about something that belongs to two or more people.

What are their names? -Their names are Naya and Alex.

What are their names? -Their names are Naya and Alex.

Caption 14, Caralie and Annie - Get to Know Each Other

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Their goal is a plan to finally help humanity reduce its carbon footprint.

Their goal is a plan to finally help humanity reduce its carbon footprint.

Caption 3, Green TV - What Is COP21?

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3) "They’re" is a contraction of "they are" used to refer to two or more people in the third person. It is especially useful for shortening sentences in the present continuous tense.

I think they're nice.

I think they're nice.

Caption 12, Comic-Con 2015 - Jennifer Lawrence

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They're playing a game on the lawn.

They're playing a game on the lawn.

Caption 10, Jessica - in Prospect Park

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Further Learning
Check out the examples above on Yabla English to get a better sense of the full context for the use of "there," "their," and "they're." Try to write a few sentences in which you use two or even all three of these words to solidify your understanding. An example would be: "They're not sure when they will get there. It depends on when their plane lands."