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Zach demonstrates how to save a Word document on a computer in an organized manner for school. He shows how to go to the file menu and use the "save as" option or use the shortcut "contrl S" to save the document. Zach navigates to the documents folder, creates a new folder called "school 2014," and saves the document within that folder. The document can be closed without losing any data, and the saved file can be easily accessed in the Explorer window under the "school 2014" folder.