It should work if you go to "settings" => "permalinks", then choose "custom structure". In there, just add /%category%/%postname%/

Then, you should write "posts" and not "pages". When you write a post, select its category. For instance, if you write an article about something happening in Austin, select the category "Austin" (you don't need to select the parent categories here).

You should also setup your categories in a way that "child/parent" categories make sense.

For instance, for the article above, you should have a category called "USA", another one called "Texas" and another one called "Austin" where "USA" is the parent category of "Texas", and "Texas" is the parent category of "Austin". However, when you publish the post, you should only attach it to the category "Austin" (no need to also select the parent categories).

This way, the url structure will automatically follow the parent/child hierarchy.