In case you wonder, Our kids don't believe in The Tooth Fairy, The Sand Man, the Easter Bunny or any other fictional magic being that would bring them something.
In all honestly, if anything we are probably too honest with them sometimes. There have been times when the kids will bring us something they have drawn or made and we really don't like it. they ask if we do and our response is not, "OH YES! This is beautiful!" We graciously ask them if they like it. when they are pleased with their own handiwork and announce they did their very best, we are happy. we tell them we are so glad they did their best and that doing your very best is Great! They usually come back with "But do you like it" and sometimes we have had to say "No, i don't really like it, but i don't have to like it. Its OK for you to like it though! I like that you made it and did your best!" They are still so proud of themselves and we have not lied to them. We also don't cheat in games either to help them win. Sadly life is full of disappointments, even at a young age we think they have to learn how to graciously leap over them and hold their heads up high in the process.
BTW, Its OK if you think we are mean.