Compensation is like a thank you gift. When you do something nice for someone, like helping them clean up their toys, they might give you a small treat or a hug as a way to say “thank you.” This is a way of showing appreciation for your help.
Imagine you are playing a game and you fall down and get a small boo-boo. Your friend gives you a band-aid and a sticker to make you feel better. That band-aid and sticker are like compensation because they help make up for the hurt you felt when you fell.
Think of compensation as a reward. If you do a good job at school, like finishing all your homework, your teacher might give you a gold star. That gold star is a reward for your hard work, just like compensation is a reward for doing something or for something that happened to you.
Compensation can also be like sharing. If you give a piece of your cookie to your friend, they might give you a piece of their sandwich in return. This is a way of balancing things out, just like compensation helps to make things fair.