How to use an iphone 4 as a internet hotspot for an ipad?

I will be buying a ipad mini and i've heard you can use an iphone to get internet on a ipad.

That's correct - navigate to the settings menu on your iPhone and you'll see a Personal Hotspot setting. Switch that to ON and you can setup your password and connect with your iPad. Hope this helps.

Well I don't know what cell phone provider you are using, but in my case I use Verizon I used to use the Iphone as a hotspot but sometimes it would take forever to display on my Wi-Fi available spots and it also drained my my Iphone battery quickly, so I added this http://shop.acnwireless.com/eCommerce/SpecialOffer.aspx?cid=34655_fd4339d14cd24ba7810e67fc41abebb6&showcustblock=true Verizon hotspot to my share everything plan it works way better than the iphone did, and I only pay $20.00 more a month, pretty cheap.