.jpg not .psd

Make sure to check your options before saving.

Note, I never knowingly chose to save anything as .jpg.

Why does PS Elements sometimes save my work as .jpg, rather than .psd, and what difference does it make to me?

By @VerlynC

The jpg format does not support many important files attributes like layers, transparency, text and shapes, paths, 16 bits depth...

So saving to jpg is apt to remove an important part of your work before saving.

The huge advantage of jpg is to create files with  drastically reduced size. They are intended for the final output, not for work in progress.

Note about your ability to edit your posts: I seem to remember that to avoid spam in this forum, new users will be allowed to edit posts after a given number of posts.

(And how to I edit a post, here?)