J.S.
I'm going to TRY to set the record straight, here.
I, too, am a Christian, but as I was growing up, Santa was never presented as THE REASON for Christmas, just a person who helped God and Jesus spread the message of caring for others, charity, and forgiveness.
First and foremost, Christmas IS about the BIRTH of Jesus Christ. Period. Secondly, the second set of gifts were the gifts brought by the Wise Men to Jesus. (The very first gift was that of Jesus, Himself.) Thirdly, Santa Claus has come into the picture because of the Legacy of a Bishop in modern-day Turkey (then known as Asia Minor). Saint Nicholas's legacy was that of giving charity to the less fortunate. I don't believe in using the "Santa is watching over you" to make our kids behave during this season, because that is NOT how St. Nicholas determined his gift-giving. I DO tell my son that JESUS is watching him, and does/does not like what He sees my son doing. (Going thru the "2nd" round...my boys are 14 years apart in age!)
I just googled Saint Nicholas, and here are a few links of his life and legacy (Yes, he was a REAL person!!):
http://www.st-nicholas-indy.org/html/svnikzit.htm.
http://www.crewsnest.vispa.com/stnicholas.htm
http://www.eldrbarry.net/rabb/folk/stnick.htm
Perhaps you can use Santa's legacy of giving to those in need to teach your children the same values. I believe it is very much what Christ would want us to do! (Jesus did not do ALL of His work by Himself...he had the assistance of 12 apostles, and then Paul, who wrote the Letters in the New Testament. You can think of Santa as another one of Jesus' helpers.)
Merry Christmas! :)
I hope this helps with your quandary!
~J.~
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