How is Earth similar to a magnet?

The Earth is similar to a magnet in that it has its own magnetic field. This geomagnetic field is similar to the magnetic field produced by a simple bar magnet with a north and south pole. The reason Earth can be compared to a magnet is due to the dynamo effect, which occurs in the Earth's outer core. The outer core is made of liquid iron and other metals that conduct electricity. As the Earth rotates, these conductive materials move, generating electric currents. These currents produce a magnetic field that extends from the core out into space.

The magnetic field of Earth is not perfectly aligned with the geographic poles (the true North and South Poles); instead, the magnetic poles are slightly off. This is why compass needles point toward the magnetic poles rather than the true poles. Over time, the position of the magnetic poles can change, and they can even flip entirely in what's called a geomagnetic reversal, although such events occur over very long timescales.