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In this Vocabulary Worksheet Factory 5 tutorial, the presenter demonstrates how to use templates for creating vocabulary documents. Templates are beneficial because they allow quick and visually appealing worksheet creation without the risk of altering the original documents. Unlike saved documents, where one might unintentionally overwrite the original, templates open as new documents, preventing accidental changes. The tutorial begins with a pre-created document, setting the stage for developing a reusable template for annual use. The presenter emphasizes the advantages of having customized templates for efficient vocabulary worksheet creation.