Claude Code Memory, Context, and Session Control

Lesson 4: Prompt Caching and Cost-Aware Work

Lesson Objectives

By the end of this lesson, students should be able to:

  • Explain prompt caching in plain language.
  • Name actions that can rebuild cache.
  • Choose a cost-aware work rhythm.

Lesson Content

Prompt caching means the system can reuse earlier unchanged context instead of fully processing the same material every turn. Students do not need to become billing engineers, but they should understand the pattern: changes near the start of the request can cause more of the session to be reprocessed.

Common cache-disrupting moments may include changing models, changing effort levels, enabling certain modes, changing tool/plugin state, compacting, accumulating images, or updating the underlying app. The practical habit is to choose model, effort, and tool setup near the start of a task, then avoid unnecessary switching midstream.

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