Our daughter is 6 and very how do I say...logical. She has already asked "do you think Santa is real?"...I always said I would tell her the truth when she asks if I'm Santa...but I wasn't prepared for is he real...so I went with what answer a question with a question..."what do you think?"...she said "I think he's real"...
Our little guy...well he's my "free spirit"...he will probably believe long after the truth has come out...but I still "believe" in the spirit and hope.
ok...yes he still has some "pull" in our house. I have used the "santa is watching you"...thought about the Elf on the Shelf just because I can't beleive I never thought of it...not for keeping the good but for the excitement of "where is he now". But I'm not ready to spend $30...
Santa has not always brought what was #1 on their list...Santa makes a determination based on needs. Last year she wanted a live puppy, so instead she got one of those "puppies animatrontic puppies"...sits on the shelf and hardly ever gets played with.
ETA: I don't say you wont' get presents...I always say "Oh Santa called to check and see if you are being good, should I let him know what you've been doing?"