Folders are very useful when you need a sub-navigation menu. They will allow you to categorize your pages and add a sub-navigation menu to each folder.
Click the create folder button (2)
Enter a name in the name field (1). It's best to use a short single word where possible. If the Create Folder Home Page checkbox is ticked, a page called 'index' will be created inside the folder
The new folder will be created:
Click the Create Page button (2) to create the page.
Note: Drag and drop is not supported in the page navigation menu
Click the page options button and select Name and URL (1)
Select the destination folder (1) and click Save (2)