You can use the Terminal window's title bar to display more information.

Terminal is a "terminal emulator", and one of the features is that a sequence of special characters (escape sequences) can be used to change the title bar.

The codes are
<esc>]2;<string><control-g>

In the zsh shell, you can modify your prompt so it changes the title bar to reflect the current directory:
prompt='%{^[]2;%~^G%}%m%# '

To type the esc and control-g, hit control-v first, then the key.

xterm FAQ
http://dickey.his.com/xterm/xterm.faq.html

Other VT100 Escape Codes
http://www.termsys.demon.co.uk/vtansi.htm