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In this tutorial, Tessa from Tales from Outside the Classroom demonstrates a straightforward system for tracking student data using Google Sheets, which she prefers over Excel for its ability to compile information across multiple sheets and share easily with parents. She starts with a blank sheet, recommending the first column be designated for student names, although users can also include student ID numbers or demographic data. Additionally, she suggests options for organizing names, such as separating first and last names into different columns or combining them. In her upcoming part 2 video, Tessa will share ideas for organizing this data effectively.