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In this Vocabulary Worksheet Factory 5 tutorial, the presenter demonstrates how to utilize templates for creating vocabulary documents. Templates allow for the quick production of visually appealing worksheets without the risk of altering the original template, as each one opens as a new document. The presenter highlights the efficiency of using a variety of customized templates compared to simply saving documents, which can lead to unintentional changes if the "Save" function is mistakenly used instead of "Save As." The tutorial begins with an already created document, aimed at developing an annual resource.