If you save a file from the SQL Editor (New SQL Editor or create a new file from the SQL project - right click > New> SQL File), it will default to .sql extension.
Thank you for your answer. When I'm saving, the background screen says it's saving to SQL but once it saves, the extension is still .txt. Then when I pull up the 'sql' to run it again, it's still being treated as text and won't run. Maybe there's something wrong with the way we have it set up.
Thanks for trying.
Roslyn, The 'SQL' project is created as a default project folder when Studio is first launched. It can contain text, Excel, or SQL files. To default to the SQL extension, you would need to create the file using the New> SQL File or give it the SQL extension when you Save.