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Zack explains how to save a Word document on your computer for better organization, particularly for school. He demonstrates starting with an unsaved document and using the "File" menu or pressing Ctrl + S to access the "Save As" menu. Zack navigates to the Documents folder, creates a new folder named "School 2014" for organizational purposes, and titles the document "Test Document." After saving, he closes the document, reassuring that nothing will be lost. Finally, he shows how to navigate to the "School 2014" folder in the Explorer window to verify the saved document.