Yes it is supposed to be that small. If you want to change your document to inches, there should be an option in your settings, you just need to click the tab that says "pixels" and change that to inches. Alternatively, if you would prefer a larger digital canvas without affecting the real size, you can change the resolution from 75ppi (pixels per inch) to 300ppi which is the standard resolution for print. Since this was digital, I made the template 75 which is the standard resolution for screens.