When a magnetic field moves through a conductor a current called an Eddy current is induced in the conductor due to the magnetic field’s movement. The flow of electrons in the conductor creates an opposing magnetic field to the magnet which results in damping of the magnet and causes heating inside of the conductor similar to heat buildup inside of power cords. The loss of energy used to heat up the conductor is equal to the loss of kinetic energy by the magnet.
One note of caution if you decide to try this, these magnets are not for unsupervised children. In fact, everyone should be careful:
Neodymium magnets larger than a half inch are very strong and should be handled with extreme care since they can be dangerous… It is best to stick with neodymium magnets of quarter inch diameter or less.