I explained to my kids, as soon as they could understand, that Santa was a more of a Spirit then a person as such as that if they want to believe he lives in the North Pole, so be it, but Saint Nicolas ( Santa ) was someone who embodies what Christmas is all about and that although Christmas Present are what stories are toild about him that Families and Love are even more important.
We talk about how in the old days there were no WalMarts and BestBuys to get gifts and that people would hand make something for each other if they could. That the important thing in life was to spend time with Family and friends and to remind them that we cared and loved them.
That spirit will never die..
The Easter Bunny and Tooth Ferry are totally different stories..