Check out example codes for "unity create a child object". It will help you in understanding the concepts better.

Code Example 1

// spawns object
        objToSpawn = new GameObject("Start");

        // add Components
        objToSpawn.AddComponent<Rigidbody>();
        objToSpawn.AddComponent<MeshFilter>();
        objToSpawn.AddComponent<BoxCollider>();
        objToSpawn.AddComponent<MeshRenderer>();

        // sets the obj's parent to the obj that the script is applied to
        objToSpawn.transform.SetParent(this.transform);

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