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I will not lie if asked a very direct question. By about grade 3 (7 - 8 years old) friends and relatives are bound to start the seeds of doubt to play in your child's mind. The first few questions will be tentative, like "There's no Santa, is there?" but unanswered or avoided ones will just add to their suspicions. Take them aside and explain the spirit of giving and believing and how Santa helps reinforce these lessons. Next year, you'll probably have to do it all over again, especially if you fear the traditions are in jeopardy for the younger siblings.