When working in Adobe® Photoshop® Elements the format that you save the file in is very important. For example, you often might have a file in one format, such as JPEG that you edit and then save to another format, such as PSD (the Photoshop Elements native file format, which preserves layer information and applies no compression). Understanding the differences between formats is therefore an important part of photo editing and sharing. You have several choices about working with files. You can set options for opening, saving, and exporting files by type, by file size, and resolution. You can also process and save camera raw files. These tools make it easy to combine files of different types and optimize them in Photoshop Elements. When creating a new document, you also need to decide what format, and what resolution, might be required. All this information will be covered in this chapter.