It has been awhile since I created buckets in Sitecore and last time I did might of been before SXA was released. After some help from the Sitecore community here are the steps I took.
Create Bucketable Template
On the standard values of the template I wanted to be part of the bucket under the Configure ribbon I clicked on Bucket.
Make Sure you Keep Parent Child Relationship
The following was important and was something that was overlooked at first. On the Standard values on the same template you set the Configuration for Buckets the following had to be checked. Bucketable and Lock child relationship. The lock is really important so you don’t lose any child folders such as the Data folder. You will never find it again if you don’t.
Add Setting with Rules
Now we need to decide on folder structure and how we assign the bucket rule. To be honest I don’t remember doing this pre SXA days. Anyway rule was simple. What is important is the format. In this case I wanted yyyy/MMMM.
/sitecore/system/Settings/Buckets/Item Buckets Settings
Set the Parent Bucket
For lack of a better term it is important that you set the parent item that the bucket items will go under as bucket.
When you right click you will now notice when you insert an item it will be stored in a bucket folder structure and the Data folder will be with it. On a side note I did use a Page Branch in order to create the structure of the item being inserted. More about those later.