Latest post
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This is the most recent post in the blog. It appears at the top. The thumbnail image is different from the image in the post.
Blog
In this template (Five), you can display a thumbnail image next to the excerpt. Not all templates do that. You can see which ones do on my Squarespace template comparison chart (also located in my book). Even if your template doesn't do that, you can recreate a very similar layout using a Summary Block. Be sure to scan through all 8 posts in this sample Squarespace blog because each one shows a few different settings/options/content types.