How to create folders for my iPhone apps?

I just got an iPhone and am loving it so far. I want to organize my apps better. Currently my phone seems to have auto-organized a few; I have a box I can click on my home screen for "utilities," which features contacts, calculator, and a compass, and I have one for "social," into which I put Facebook, LinkedIn, and similar apps. How do I create those organizing-box folders for other apps?

Sorry, I'm sure I'm not using the proper iPhone terminology. Clearly I'm an iPhone newbie. Thanks.

Added (1). Thanks for the info! Very handy. Do you know how I can rename a folder after I've already created one (and it and all the icons have stopped wiggling)?

To make a folder:
1. Hold your finger down on an icon, until they all begin to wiggle.
2. Drag one icon on top of another. That will make a new folder that has both icons in it.
3. (Optionally) Drag more icons into that same folder, or drag them back out again.
4.To stop the wiggling, press the home button.

You can't put folders inside other folders, and you can't put too many apps in one folder.

P.S. Press the (x) on the icon to uninstall that app.

Keep Holding an app until it starts to shake the drag it to the top of any other app a filder will be made. Use tge same way to add apps to the folder