Place the bar magnet on a flat workspace. Each end represents a different magnetic pole -- North and South.
Place the compass above the bar magnet. Locate the directions on the compass -- North, South, East, West. These directions start at the top of the compass and move in clockwise fashion. If you need an easy way to remember the order, memorize the following phrase: Never Eat Soggy Waffles with "N" standing for North, "E" standing for East, "S" standing for South and "W" standing for West.
Move the compass around the magnet in a circle while keeping it flat on the workspace. Watch how the arrow of the compass changes directions. This is useful exercise for understanding how a compass works. A compass that is north-seeking will always point toward the north. When it doesn't, then it has come into contact with a strong magnet, as this experiment showed.