Read a story to the children that incorporates compound words. Explain what a compound word is, and ask children to raise their hands when they think they hear a compound word. When they give the signal, stop and analyze the word in question.
Allow the children to break the word into two parts verbally. Talk about why the two base words might be combined to form the compound concept. If the class misses a word, double back and explain the definition and components. Keep a list of all the compound words you find for review at the end of the lesson.