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Creating categories and tags

I need some help. I would like to and categories and tags to collections, in a similar you have in more tradtional blog posts in Wordpress. I have categories already. As an example, my Category may be New York, and I may use tags, travel, hotels etc.

From what I understand WF doesn’t use tags normally. I have been reading some of the other threads about people wanting to add tags to collections.

Can someone tell me if there are any good videos on how to do this? If not, do I create searchable or filterable (if thats a word) tags by going to CMS Collections, and Posts and then adding a “Multi Reference” field as in the screenshot here: Screenshot by Lightshot

Thank you.