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You can also set this under Tools = In Word 97-2000, when you select New under the File menu, you are shown templates from which you can choose. (And if there isn't room for all of the tabs, there will be one that simply says "More" and gives you access to the others.) When you pick a template and create a new document based on that template, the template remains "attached" to the document. See File New Variations in the Versions of Microsoft Word for more on this.) Any text that is in the template will be the start of your new document.
See Ribbon in Word 20 for more information on the Ribbon interface. In general, in English "template" means a form or stencil.If you can't see them, your formatting will be very hard to figure out.This is one part of the Word equivalent to Word Perfect's "reveal codes." The default is to not show these characters because the marketing people at Microsoft thought it would scare you to have any clue as to what was going on in your document.Forms in Word are a separate matter; they can be contained in Word templates, but are not the "templates" we are talking about.
Generally, in Word when someone talks about a template, the subject is a document template.
You don't need to use all (or even any) of these features for templates to help you and those with whom you work.