There are three saving commands in Photoshop Elements: Save, Save As and Save for Web.

1. Open an image from the "ASAP" folder; for example, Jack.jpg

2. Press [Ctrl+Shift+S] keys; the Save As dialog appears.

3. In the dialog box, select the "Photoshop" format as it is shown in the movie and click "Save"
The Jack.jpg has been saved as Jack.psd. Now we can work with it without affecting the original image.
NB Never save edited photos from our sample folder under the same name, as you may need the original images for follow-up tutorials.

4. In your Toolbox, choose the Brush Tool; select a color in the Swatches palette and paint something on the image

3. Have you finished? I'm sure it looks great now! Let's save it again using Save command. Press [Ctrl+S].   Your efforts are saved now to Jack.psd*  

*PSD files are native to Photoshop Elements