I recently re-installed my sims 2 due to some issues I had in the past.
However I noticed that I don't have a downloads folder. I read somewhere online to just add one but I tried that for my sister and it didn't work for her, of course she doesn't know how to download custom items properly i dont think.
Anyways, I would really appreciate some help!

There's no reason for a Downloads folder you create yourself to not work as long as it's spelled correctly and capitalized. So, Downloads Just like that. Should work fine.

Okay thank you. I just wanted to double check.
One more question, should it be in the Sims 2 folder? Or the lastest game I have which is Sims 2 pets.

You should read our guides, so that you know what to do. You need to make a Downloads folder in the User Data location, not the game install location.

This should help:
Game Help:Downloading for Fracking Idiots 6^wiki

You can also run Bodyshop to create the file for you.

Ohhhh okay. Thank you so much! I really appreciate it!
I haven't played Sims 2 in a while since it got corrupted, so I kinda forgot a few things lol.

Can I ask one more question? It isn't related to downloads...or should I just make a new thread or whatnot.