How to best explain to users where their Contact list(s) can be found

[Deleted]

There are now two options when saving a contact. 1. What is the difference ?  2. It is easy to find the location one of them but not the other. How to explain to average user ? 

[#2]

Are you talking about People?  You can create contacts/people directly in the People app or from the Mail app (or any other contact-enabled app).