You will notice on the left side of the screen a list of options - including the 'My Folders' link.
Clicking on the 'My Folders' link shows you specific folder-focused options, including the option to Add a new one.
Clicking on that option brings up a basic box and asks you to name your new folder:
This is where you can pick whatever name makes the most sense to you. Name the folder after your paper topic - or name the folder after your class - it's totally up to you. RefWorks even gives you the option to Rename the folder later if you need to - or if you are getting super-granular you can even create Subfolders.
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