I was adamant about never poisoning my kid's mind with any magical thinking, including deities and religion. It didn't dull his enthusiasm for holidays one bit. He LOVED xmas, easter, halloween, all that stuff. I don't think kids really prioritize magic creatures or deities, they just dig the food, family, fun, and festivities of the holidays. And the presents, of course. For xmas and his birthday, I took him to shop and let him know the budget. It was interesting to see him weigh his options and make his own choices on what he received. He still talks about how cool that was to this day. I think the lies told to children are for the adults' amusement more than the kids'...