If you have a lot of Google docs you may want to organize your documents into different folders.
To start a new Folder, go to "New" and choose "Folder."
You can now name this folder anything you want. To add a document to a folder, click on the folder icon to the right of your document name, and choose the folder to which you would like to add the document.
You can color code your collections to make them easier to tell apart--all of the documents in each collection will take on the color of their collection.