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Zack explains how to save a Word document on a computer for better organization, particularly for school. He begins with a document that hasn't been saved and shows how to access the "Save As" option through the file menu or by clicking the disk icon or pressing Ctrl + S. He navigates to the documents folder, creates a new folder named "School 2014," and titles the document "Test Document." After saving, he demonstrates that the document can be closed without losing any information. Finally, he shows how to locate the saved document within the "School 2014" folder in the Explorer window.