[BrianR]

I think it's best to allow children to believe until they find out for sure. Then you explain to them that if they think of Santa as a real person with the sleigh and flying reindeer and all, then no, there is no Santa Claus. But if they think of Santa as a concept; a metaphor for the spirit of giving and goodwill, then yes, there IS a Santa. As long as people keep that spirit alive, Santa will live too.

This assumes that the child is capable of thinking on this level, of course.

And then, when they have children, you can tell them about the three stages of Santa...

1) You believe in Santa Claus.
2) You do not believe in Santa Claus.
3) You *are* Santa Claus.

And there you have it!

Brian