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It is labeled as the 21st century because the first century contained years 1-99. Year 100 was the beginning of the 2nd century. Well to understand this you have to go back to the beginnings!!!

between the year 0000 and 0100 - you are IN the first hundred years ie IN the 1st Century.

Thus between 2000 and 2100 - you are IN the 21st Century.

It is the same with your birthdays - the day after you reach the age of one you are in your second year of life!

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Q: Why is it that you're in the 21st century but it's 2008 so as 2008 says you're in the 20th century?
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