diff --git a/src/filewidgets/knewfilemenu.h b/src/filewidgets/knewfilemenu.h
--- a/src/filewidgets/knewfilemenu.h
+++ b/src/filewidgets/knewfilemenu.h
@@ -186,7 +186,7 @@
     Q_PRIVATE_SLOT(d, void _k_slotAbortDialog())
     Q_PRIVATE_SLOT(d, void _k_slotActionTriggered(QAction *))
     Q_PRIVATE_SLOT(d, void _k_slotCreateDirectory(bool writeHiddenDir = false))
-    Q_PRIVATE_SLOT(d, void _k_slotCreateHiddenDirectory())
+    Q_PRIVATE_SLOT(d, void _k_slotCreateHiddenTildeDirectory())
     Q_PRIVATE_SLOT(d, void _k_slotFillTemplates())
     Q_PRIVATE_SLOT(d, void _k_slotOtherDesktopFile())
     Q_PRIVATE_SLOT(d, void _k_slotOtherDesktopFileClosed())
diff --git a/src/filewidgets/knewfilemenu.cpp b/src/filewidgets/knewfilemenu.cpp
--- a/src/filewidgets/knewfilemenu.cpp
+++ b/src/filewidgets/knewfilemenu.cpp
@@ -249,9 +249,9 @@
     bool checkSourceExists(const QString &src);
 
     /**
-      * Asks user whether to create a hidden directory with a dialog
+      * Asks user depending on whether they wants to create a hidden directory or a directory named "~" with a dialog
       */
-    void confirmCreatingHiddenDir(const QString &name);
+    void confirmCreatingDir(const QString &name);
 
     /**
       * The strategy used for other desktop files than Type=Link. Example: Application, Device.
@@ -304,10 +304,10 @@
     void _k_slotCreateDirectory(bool writeHiddenDir = false);
 
     /**
-     * Callback function that reads in directory name from dialog and processes it. This will wirte
-     * a hidden directory without further questions
+     * Callback function that reads in directory name from dialog and processes it. This will write
+     * a hidden directory or a directory named ~(tilde) without further questions
      */
-    void _k_slotCreateHiddenDirectory();
+    void _k_slotCreateHiddenTildeDirectory();
 
     /**
      * Fills the templates list.
@@ -405,10 +405,10 @@
     return true;
 }
 
-void KNewFileMenuPrivate::confirmCreatingHiddenDir(const QString &name)
+void KNewFileMenuPrivate::confirmCreatingDir(const QString &name)
 {
-    if (!KMessageBox::shouldBeShownContinue(QStringLiteral("confirm_create_hidden_dir"))) {
-        _k_slotCreateHiddenDirectory();
+    if (!KMessageBox::shouldBeShownContinue(QStringLiteral("confirm_create_hidden_tilde_dir"))) {
+        _k_slotCreateHiddenTildeDirectory();
         return;
     }
 
@@ -419,23 +419,33 @@
     cancelGuiItem.setIcon(QIcon::fromTheme(QStringLiteral("edit-rename")));
 
     QDialog *confirmDialog = new QDialog(m_parentWidget);
-    confirmDialog->setWindowTitle(i18n("Create hidden directory?"));
     confirmDialog->setModal(m_modal);
     confirmDialog->setAttribute(Qt::WA_DeleteOnClose);
 
     QDialogButtonBox *buttonBox = new QDialogButtonBox(confirmDialog);
     buttonBox->setStandardButtons(QDialogButtonBox::Ok | QDialogButtonBox::Cancel);
     KGuiItem::assign(buttonBox->button(QDialogButtonBox::Ok), continueGuiItem);
     KGuiItem::assign(buttonBox->button(QDialogButtonBox::Cancel), cancelGuiItem);
 
-    KMessageBox::createKMessageBox(confirmDialog, buttonBox, QMessageBox::Warning,
+    if (name.startsWith(QLatin1Char('.'))) {
+        confirmDialog->setWindowTitle(i18n("Create hidden directory?"));
+        KMessageBox::createKMessageBox(confirmDialog, buttonBox, QMessageBox::Warning,
                                    i18n("The name \"%1\" starts with a dot, so the directory will be hidden by default.", name),
                                    QStringList(),
                                    i18n("Do not ask again"),
                                    nullptr,
                                    KMessageBox::NoExec);
+    } else if (name == QLatin1String("~")) {
+        confirmDialog->setWindowTitle(i18n("Create directory named ~?"));
+        KMessageBox::createKMessageBox(confirmDialog, buttonBox, QMessageBox::Warning,
+                                   i18n("Naming a folder \"%1\" is not recommended because it may be confusing or dangerous when using the terminal to delete things.", name),
+                                   QStringList(),
+                                   i18n("Do not ask again"),
+                                   nullptr,
+                                   KMessageBox::NoExec);
+    }
 
-    QObject::connect(buttonBox, SIGNAL(accepted()), q, SLOT(_k_slotCreateHiddenDirectory()));
+    QObject::connect(buttonBox, SIGNAL(accepted()), q, SLOT(_k_slotCreateHiddenTildeDirectory()));
     QObject::connect(buttonBox, &QDialogButtonBox::rejected, q, &KNewFileMenu::createDirectory);
 
     m_fileDialog = confirmDialog;
@@ -856,7 +866,7 @@
     QUrl url;
     QUrl baseUrl = m_popupFiles.first();
 
-    QString name = expandTilde(m_text);
+    QString name = m_text;
 
     if (!name.isEmpty()) {
         if (QDir::isAbsolutePath(name)) {
@@ -890,9 +900,10 @@
                 _k_slotAbortDialog();
                 return;
             }
-            if (!m_viewShowsHiddenFiles && name.startsWith(QLatin1Char('.'))) {
+
+            if ((!m_viewShowsHiddenFiles && name.startsWith(QLatin1Char('.'))) || (name == QLatin1String("~"))) {
                 if (!writeHiddenDir) {
-                    confirmCreatingHiddenDir(name);
+                    confirmCreatingDir(name);
                     return;
                 }
             }
@@ -923,7 +934,7 @@
     _k_slotAbortDialog();
 }
 
-void KNewFileMenuPrivate::_k_slotCreateHiddenDirectory()
+void KNewFileMenuPrivate::_k_slotCreateHiddenTildeDirectory()
 {
     _k_slotCreateDirectory(true);
 }