Go to your Home screen.
Touch and hold your finger down on the app you want to create a folder until all apps begin to jiggle.
Keep holding your finger down on the app and drag it on top of another app you want in the same folder.
For most Androids (except Galaxy S3):
1. To initiate a folder, you need to have two apps.
2. To begin, grab one of those apps by long pressing and drag it over the top of the other.
3. Once you hover one over the other, a circle should appear around the bottom app.
4. With the circle showing, let go of the app you are holding onto.
5. This should create a circle (folder) with two apps in it.