In this chapter we study finite difference schemes for parabolic partial differential equations. The notions of conditional and unconditional stability, and CFL condition are introduced to analyze the classical schemes for the heat equation. Different techniques, like maximum principles and energy arguments are presented to obtain stability in different norms. Then, we turn to the study of the pure initial value problem, the grand goal being to discuss the von Neumann stability analysis. To accomplish this we introduce the notions of Fourier-Z transform of grid functions and the symbol of a finite difference scheme. This allows us to state the von Neumann stability condition and prove that it is necessary and sufficient for stability. These notions are also used to present a covergence analysis that is somewhat different than the one presented in previous sections.