Hi babymum.
I will try my best to answer your question as I am not an expert in using features of Youtube as well. I just use Youtube mainly to upload videos (as my relatives on the other side of the world are happy to see Megan in videos) and to view some educational videos. Instead of looking up again and again those useful videos that my little one likes to watch, I just created a playlist for her.
Anyway, when I added the Kids Stories playlist, I clicked the "Options" button (found in the playlist bar at the buttom of the screen) then clicked "Save as a new playlist" and add a Playlist Title, which is a pretty easy step, to save the entire playlist automatically(wherein the Kids Stories consists of 15 videos). Rather than creating a new playlist and adding each video url one by one.
Reading your question makes me browse Youtube more, specifically to look at the "Add to" button(add to FAVORITES or PLAYLIST) and to test the function of the Favorite feature. When you "favorited" a video in Youtube (once logged in to Youtube. Note that this is different than using the "Favorite" feature of your browser) it will be saved in your Favorites. You can't create folder/s under Favorites but you can add the videos in your Favorites list to your playlists.
With playlists, you can create several playlist names/titles (which act as a folder to categorize your videos). I think playlists are useful especially if you have several videos you want to categorize. Like, for example, you want to categorize your youtube videos by subjects-Science, Math, Geography, etc.
Playlists in youtube, unlike adding links to folders in your browser's favorites/bookmarks, allow you to play all videos in the playlist with one click (just click on the playlist name), whereas with links saved in folders in your browser, you have to click each one to advance to the next video.
Starting this month I want to be organized so I might be busy adding more educational videos in my playlists.
@ SaidahEmery.
Walang anuman.
@ Lelask: You're welcome and congratulations! I'm so happy for your child's reading progress.