Found the solution in another thread - Word 2010 "Save As" has no folders

Thanks to Charles Kenyonfor pointing me in the right direction.

She should put her mouse pointer on the bottom border of the SaveAs dialog box until it becomes a two-pointed up-down arrow. Click and drag it down to expand the box.
That will expand it into a top and bottom with the top showing folders. She can then do the same thing with the mouse in the center of the dialog box and drag the center bar down to expand the folder area more.

When I expanded the box the folders were still not visible. I had to find the spot to drag the center bar down to see any folders. Wife is now happy.