Thats great Magr and is relavent for kids under 10.
When kids are old enough to ask the right questions, I tell them Santa is based on a real person, 'saint Nicolas' who lived more than 1,500 years ago and had the reputation of gift giving. dead? or alive? I let them decide, but if asked, I say I believe while his body is very dead, his spirit is very much alive.
are not Master pre-teen and teen black-belts already artificially inflated enough to where we have to perpetuate the illusion? How many gifts does a kid need to recieve on Christmas in order to understand it's spirit?