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Zach demonstrates how to save a Word document on the computer, emphasizing the importance of organization and backups for schoolwork. He shows how to access the "save as" option through the file menu or by using keyboard shortcuts. Zach creates a new folder named "school 2014" for better organization and saves the document within it. He highlights that closing the document after saving ensures no data loss, and the saved file can easily be accessed in the designated folder.