I didn't have the templates dropdown showing up in the main or quick editors, nor did I have the ability to create templates in my profile.
I had both of these enabled under usergroup manager for admin: Can Use Post Templates
This will allow the user to use their own created Post Templates. Yes Can Create Own Post Templates
This will allow the user the ability to create their own Post Templates. Yes
But the two option below it for global options were set to no. When I turned those on it seems to have triggered the other two as well, because otherwise nothing was working because I could not even create my own templates. It works just fine with them all enabled, so all is well! I don't really need to have global options disabled anyway.