I found a couple good web pages that helped me out in finding ways to configure the appearance of Terminal.
The following picture shows the first two commands I ran right after opening Terminal to get to where I wanted to be (the .bash_profile file). ‘nano’ is just another command line text editor that I (very briefly) used to edit the file.
When you’re satisfied with your edits, press ctrl+o, then press “return”. This will save your edits. Finally, press ctrl+x to exit nano. You’re done!
You can do A LOT more to edit the look of your terminal, but I was satisfied with this for the time being. Of course, if you’re feeling particularly hackery you can do all kinds of crazy things to change the appearance. Enjoy!