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Zach demonstrates how to save a Word document on a computer for school. He emphasizes the importance of backups for organization. By going to the file menu or using shortcuts like Ctrl+S, the save as menu can be accessed. Zach creates a new folder in the documents folder, names it "school 2014," and saves the test document in it. He highlights that closing the document after saving will not result in any data loss. The saved document can be found in the Explorer window under the "school 2014" folder.