If you like it coloured, and also would appreciate to know which terminal you're in, here's my way:
TTY=$(tty)
TTY=${TTY##*/}
export
PS1="\[\e[32;1m\][\[\e[31;1m\]\u\[\e[32;1m\]@\h:\[\e[36;1m\]$TTY\[\e[32;1m\]:\[\e[34;1m\]\w\[\e[32;1m\]]
"
I usually put this in /etc/profile so that I have it system-wide.
