One of the better parts of my job is attending one or two student chapel services a week. This year I've been assigned year 8, which is sweet as it means I also get to work with the worship band (a bunch of rather talented musicians who are learning to listen to each other, and the congregation, and play accordingly, and actually sound pretty good now).
Our Chaplains do a pretty amazing job in engaging the students during chapel times. Today our junior chaplain launched into a quiz, handing out freddos or other similar rewards. What was odd, was that he was giving the freddos to anyone who answered, regardless of whether or no they were right or wrong. This obviously annoyed quite a few of the students who thought they DID know the answer and should have received the prize. He then asked about their thoughts and feelings on the quiz, and rather smoothly linked that straight into the parable of the workers in the vineyards (Matt 20: 1-16) who work different hours for the same pay.
While not a perfect equivalent (but i'm not going to argue about that), it got the students attention, in a context they were immediately familiar with (school/exams etc) and allowed him to speak about the kingdom of heaven and rewards and things that they probably wouldn't have really listened to if he had just launched into a sermon.
Now it's been a couple of years since i was a youth leader, but over the years I've seen/heard/used various different techniques to retell an old story in context, or ensure i had listeners attention.
What are some of the ones you have experienced or used, that really stand out as an effective teaching tool, especially when dealing with youth (though adult illustrations don't go astray either)
Disclaimer - i may pinch your ideas for use in my own talks