**What is electricity?**
Atoms make up, well, just about everything.
Atoms can be thought of as being made of three parts: protons, neutrons and electrons.
Think of an atom as a tightly-wound bundle of neutrons and protons, with varying numbers of electrons floating around “in orbit” around that bundle.
Specific electrons aren’t necessarily bound to that bundle of neutrons and protons forever and ever. With enough force, the outer orbit of electrons can be nudged out of that orbit and become “free electrons”.
Do this on a large enough scale, and it allows you basically move charge, which is the tl;dr of electricity.
**What is magnetism?**
Objects being magnetic is due to what’s called electromagnetic force. Any moving electrical charge (see above) generates a magnetic field that runs perpendicular to it.
*Extremely* rough TL;DR, but this is eli5. To answer:
>How magnets generate electricity?
Moving magnetic fields, pushes/pulls electrons. That movement is what results in an electrical current.
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