I think some kids might see it as lying, and it might make them angry, hurt, or mistrusting if they find out it wasn't true. However, other kids can discover that Santa isn't really and still trust their family members, not feel hurt nor angry, and be happy that they believed. I think it's worse if kids are told Santa isn't real after being told he is real, rather than having them gradually figure it out on their own. If they believe it until they figure things out for themselves, I think it won't be so painful or upsetting, partially because it is gradual that way, rather than a shocking and sudden disillusionment. But you can't always control what they find out or when they find it out, and therein lies the problem.

I was taught about Santa, and I was never hurt or angry when I found out he wasn't real. I never lost trust in my family. I understood why they did it and knew that didn't mean they would lie to me about other things. It had been fun. And I hadn't suddenly been disillusioned. I just gradually realized it wasn't really fitting in with what I knew to be realistically possible. I continued to pretend to believe in Santa after realizing he wasn't real, because I wasn't sure if not believing would equal less presents. So I pretended to believe to keep getting as many gifts- and on a less selfish note, to keep from dissapointing my family.

I agree with Moonrise- you can play make believe and not try to convince your kids that Santa is real. But I wouldn't skip out on the whole thing. My friend was raised to believe Santa didn't exist and her family didn't even do make play believe with it. I always felt like she was missing out, even after I knew Santa was make believe. I don't know what I'll do if I have kids. I want them to have a sense of magic, but I don't like the idea of telling them something is true for years, when it isn't. I am afraid it could damage their trust. But I personally hold no grudges for being told Santa was real. Not in the least. I find it preferable to the no-nonsense approach my friend's family took.