The world spawn point is where players appear in a newly created world or when joining a multiplayer server. The world's spawn point will be on a surface within 5 blocks of the horizontal middle of world, and is a fixed location that does not change.
A player's spawn point is initially the world spawn point, but can be changed by building a bed, placing it in a house and right-clicking it. The spawn point is where players respawn after dying, and where a Magic Mirror will teleport them. However, if a player's current housing is broken, their spawn point reverts back to the world's initial spawn point.
It is very useful to build a house over your initial spawn point, because if you die, or your bed is obstructed, you will spawn inside the house. Conversely, be cautious about digging deeply beneath a world's initial spawn point because if you die, or your bed was displaced, you will fall from your initial spawn point.
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