One example of how to deal with a child questioning Santa might go something like this: "Yes, Tommy, Santa Claus is very real, and if you listen to the laughter and excitement of children at Christmas you are hearing him. It is true that many of the stories you have heard about Santa are fantasies to help you have fun. Rudolph the Red-Nosed Reindeer, Santa's workshop at the North Pole and Santa squeezing down your chimney are all fun things to imagine, but they are not real. But the love and joy that Santa represents to us, the kindness and the generosity that we show each other in his name are all very real and very special. You see, Santa is really a feeling - a part of the spirit of Christmas - and when we are filled with that spirit we become like Santa ourselves. So, yes, Santa, like love, kindness and generosity, is real and lives in the heart of every one of us."
My thoughts: touching, but no thanks. Being an atheist now, that just sounds so very strange to my ears. Cult-like, even.
I'm surprised that at the end of this paragraph the author didn't add:
In the name of the Santa-father, and of the Santa-son, and of the Christmas Spirit. Amen.
Or maybe the author should have made a parody of Colossians 2:9 & 10 and said: In St. Nick dwells the fullness of the Santa-God bodily, and Christmas is complete in him.
If you want, check out the whole article: Psychology: When it comes to Santa Claus, you've gotta believe