I like this question very much. But I think the best approach is via a plethora of examples meant to demonstrate the variety of uses of equivalence classes. I doubt there is a singular example that can open every student's mind to the concept of equivalence classes. That said, here are some examples I have used effectively:
1) I have taught a "transition to proofs" course for a few years, and have included the following sequence of exercises. During the first few weeks or so, after working with sets and their notation, I assign this exercise:
What's $\mathbb{Z}$ Point Of This Problem?: In this problem, we are going to ''prove'' the existence of the negative integers! I say ''prove'' because we won't really understand what we've done until later but, trust me, it's what we're doing.
Because of this goal, you cannot assume any integers strictly less than 0 exist, so your algebraic steps, especially in part (d), should not involve any terms that might be negative.
That is, if you consider an equation like $x+y=x+z$, we can deduce that $y=z$, by subtracting $x$ from both sides, since $x-x=0$.
However, if we consider an equation like $x+y=z+w$, we cannot deduce that $x-z=w-y$. Perhaps $y>w$, so $w-y$ does not exist in our context... On to the problem!
Let $P=\mathbb{N}\times\mathbb{N}$. Define the set $R$ by
$$ R = \{((a,b),(c,d))\in P\times P\mid a+d=b+c\} $$
- Find three different pairs $(c,d)$ such that $((1,4),(c,d))\in R$.
- Let $(a,b)\in P$. Prove that $((a,b),(a,b))\in R$.
- Let $((a,b),(c,d))\in R$. Prove that $((c,d),(a,b))\in R$, as well.
- Assume $((a,b),(c,d))\in R$ and $((c,d),(e,f))\in R$. Prove that $((a,b),(e,f))\in R$, as well.
I pose this mainly as a "can you understand new notation and write a proof about it" problem, and say as much to the students.
But a few weeks later on, when we're talking about equivalence relations, I bring up this exercise again. I even write a passage in our book about this:
Remember that crazy exercise from Chapter 3 that had you prove something about a set of pairs of pairs of natural numbers, and we claimed that was proving something about the existence of the integers? What was that all about? Look back at the exercise now, Exercise [reference]. You'll see that the last three parts of the problem have you prove that the set $R$ we defined is an equivalence relation on the set $P=\mathbb{N}\times\mathbb{N}$. Look at that! You proved $R$ is reflexive, symmetric, and transitive.
What that exercise showed is that (essentially, we are glossing over some details here) any negative integer is represented as the equivalence class of pairs of integers whose difference is that negative integer. That is,
$$ -1\;\; \text{''}=\text{''}\;\; [(1,2)]_R = \{(1,2),(2,3),(3,4),\dots\} $$
and, for another example,
$$ -3\;\;\text{''}=\text{''}\;\; [(1,4)]_R=\{(1,4),(2,5),(3,6),\dots\}$$
This is only an intuitive explanation and not rigorous, mathematically speaking, but that's the idea!
For the students who might already be inclined to think abstractly and want to pursue higher math, this is a great teaser, and has led to many discussions in office hours about set theory, logic, and so on. For other students, it's a reminder that exercises from the past weren't done in a vacuum; they have a meaning, and can teach us new things. And for every student, it's at least a reminder that math is interconnected in ways we might not expect, a priori.
2) An in-class example I like to discuss involves comparing an equivalence relation to a similar (non-equivalence) relation that is meant to "encode the same information". I include the following example in the text, and follow up on it with an in-class discussion, which also serves to point out the distinction between "a relation from $A$ to $B$" and a "relation on $A$":
Let $S$ be the set of students in our class. Define a relation $R_1$ between $S$ and $\mathbb{N}$ by saying $(s,n)\in R_1$ if person $s\in S$ is $n$ years old.
Now, define a relation $R_2$ on $S$ itself by saying $(s,t)\in R_2$ if persons $s$ and $t$ are the same age (in years).
How do the relations $R_1$ and $R_2$ compare? Do they somehow ''encode'' the same information about the elements of the set $S$? Why or why not?
3) You mention $\mathbb{Z}/n\mathbb{Z}$, naturally. I think it behooves us to show why this is useful, not just that it's an equivalence relation. In the past, I have demonstrated exemplary uses via the Chinese Remainder Theorem, Fermat's Little Theorem, etc. But I've found that the most striking (and convincing) uses are ''smaller'', computationally, and serve to show how previously tedious arguments can be cleaned up.
For instance, a standard induction problem asks a student to show $\forall n\in\mathbb{N}$ that $6\mid n^3+5n$. A standard induction argument requires some algebraic manoeuvering, and ends up being entirely unenlightening for the beginning student (for whom this is meant to be practice relating to the inductive nature of such relationships). Instead, I go back and use mod 6 and say, ''There are 6 cases. Either $n$ is congruent to 0,1,2,3,4,5 modulo 6. In each case, we see...'' And there they have it.
Likewise, consider proving that any perfect square is either a multiple of 4 or one more than a multiple of 4. This can be good practice working with formal definitions (''multiple of 4 means there exists $k\in\mathbb{Z}$ such that...'') but it's far more ''fun'' for them to just see that $0^2\equiv 2^2\equiv 0$ and $1^2\equiv 3^2\equiv 1$.
Finally, divisibility tricks are fun, too. I find that college students are well aware of the ''casting out 3s/9s'' trick, but are wholly unaware of how it works. Setting up a mod 10 congruence to prove it really shows some "aha"s and smiles.
In summary, I don't think it's necessary to show a typical undergraduate the sophisticated concept of ''modding out'' a set by an equivalence relation. In a classroom setting, it usually suffices to whet their appetite by showing students the utility of equivalence relations in various settings. (In the examples above, this means (1) formally defining $\mathbb{Z}$ from $\mathbb{N}$, (ii) comparing an equivalence relation and a ''regular'' relation, and (iii) using equivalence classes to clean up a formerly ''messy'' argument.) If particular students are intrigued by this, then you might foster further discussions, either in class or in office hours (depending on the popularity/prevalence).