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In this video tutorial, the presenter demonstrates how to create and save a template in Microsoft Word. They begin by showcasing an existing template with a header, company name ("Turtles Point"), logo, and contact number. The tutorial emphasizes the importance of formatting the document before saving it as a template. To do this, users must navigate to the "File" menu, choose "Save As," select the desired location (such as the desktop), and from the "Save as type" dropdown menu, choose "Word Template." The presenter suggests changing the default name for clarity. This process allows users to reuse the formatted template for future documents.