What you are doing is the only way many of us learned how to use Word. Start doing stuff, making mistakes and asking online.
If you don't mind, send me a copy of your template and I will try to revamp it for you. It will have to wait for the weekend though.
Will this be used only on computers with Word 2007 and later?
As you may have gathered, "Template" is a term of art in Word. It is a highly specific subset of what we mean in the English language by that word. A document template is always used to create new documents when properly designed and used. If you double-click on a Word template in Word, a new document will be created by Word based on that template. This assumes that Word is properly installed.
Any document can contain a format and places to put information. The latter may be what you want. You can decipher my email address from the following: wordfaq[at]addbalance[dot]com.
If you are going to be using Word extensively or teaching your students to use it I strongly urge you to read the following (including all of the pages that follow it). It will save you endless frustration and is very well written.
Basic concepts of Microsoft Word: An introduction by Shauna Kelly
The author passed away before Word 2013 was introduced but the concepts and principles involved are valid with Word 2013. Her website still has great tips on using Word and is being maintained by volunteers.
Then, take some time to learn about Styles. They are at the heart of how Word works.