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Zach shows how to save a Word document on your computer, emphasizing the importance of backups for organization, especially for school. He demonstrates using the File menu to choose Save As or pressing Ctrl+S to access the save dialogue. Zach creates a new folder named "school 2014" in the Documents folder, saving a test document within it. He closes the document and shows how to locate the saved file in the Explorer window under "school 2014" folder in Documents.