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In this Vocabulary Worksheet Factory 5 video, the presenter demonstrates how to work with templates to create vocabulary documents. Templates are advantageous for quickly producing aesthetically appealing worksheets without the risk of altering the original template file. Unlike using a saved document, which can be accidentally modified by forgetting to use the "Save As" function, templates open as new documents, preserving the original. The presenter starts with an existing document to create a reusable resource for future use. The focus is on the practicality and safety of using templates in document creation.