Moving iTunes from Mac to external hard drive

I have a new Mac with a small drive for storage. I need to move my iTunes to an external hard drive. I am so confused about how to do this. Most guides tell me to find folders that I just can't find. My 'music' folder looks empty and I can't find a my music folder. I have seen the guides on moving photos, and the folders just don't match for music.

Do I need to consolidate my library? How do I find my music? Do I do a split library?

I need to transfer everything, including playlists.

Idiots guides are very welcome....

PS I have read loads of guides, and I can't afford bigger Mac storage!