WordPress categories are a very convenient way to organize
your posts. You can have parent and child categories making hierarchical
arrangement of your posts possible. In addition to that, one post can be into
more than one category. This gives you a lot of flexibility to show exactly the
posts you want, exactly the way you want them in widgets, menus or directly in
your WordPress theme.
In this WordPress categories you will find more on these topics:
How to create WordPress categories
To creat new categories in WordPress, you need to access the Posts
-> Catgories page first.

On the left side of the page you will see a tab that allows
you to create categories. Fill in the category name, its slug (will be used in
the category URLs) and the Add New Category button. For the purpose
of this tutorial we will make a new category named Family posts.
That's it, your first category is ready. Now, let's make a sub-category of the Family posts one named Nephews. Fill in a name and slug the way you did with the first category but this time select Family posts as parent for the new category. Then, press Add New Category once more to save thew new sub-category.

That's it, your first category is ready. Now, let's make a sub-category of the Family posts one named Nephews. Fill in a name and slug the way you did with the first category but this time select Family posts as parent for the new category. Then, press Add New Category once more to save thew new sub-category.

How to assign posts to categories
Once you have the category structure created, you can add
posts to categories. There are two ways you can do this. The first one is to
open a particular post (or write a new one) and place a checkbox in the
category you want to assign it to.

The second way is to bulk add posts to a category. To do
this go to Posts -> All Posts. Next, select the posts you want to add
to a category, click on the Bulk Actions tab, select Edit and
finally press the Apply button.
Once you do that, you will few options you can adjust for
those posts. One of them is the Categories section. Select the category you
want to add those posts to and click on the Update button.


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