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Dawn Monroe provides a tutorial on creating a template file in Microsoft Word. The purpose of this template is to streamline the process of using frequently needed documents without having to search for existing files. She demonstrates this by preparing a handout she regularly uses for webinars. To create the template, Dawn shows how to use the "File" menu to save the document as a Word template file, naming it "handout new." This method allows her to easily start new documents based on the template, enhancing efficiency and organization for repetitive tasks.