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Zach demonstrates how to save a Word document on a computer. He emphasizes the importance of backup for organization, showing how to use the "save as" option or press Ctrl+S to save a new document. Zach navigates to the documents folder, creates a new folder named "school 2014," and saves the document. Once saved, the document can be closed without losing any data. Navigating to the Explorer window, Zach shows the newly created "school 2014" folder in the documents section.