We're not going to push the Santa thing with our kids. I really like my parent's approach, and dh and I are going to do something along those lines. Mum never brought Santa up, just let us hear about him at school, see him at the shopping centre - we're Christians, so we were very aware that Christmas was a celebration of Jesus' birth.

Then, one time we said to mum 'Is Santa real'? She said 'do you really want to know?' I'm pretty sure my sis said 'no actually, I don't want to know'. I said 'yes' she said 'what do you think'? I said that I didn't think he was real, and then I think she said something along the lines of how it's still fun to pretend, and not to ruin it for other kids.

So, she didn't lie to us about it, but also encouraged us to join in the spirit of that kind of thing, because it's fun. I remember being much older and mum warning us that if 'Santa' heard us say we didn't believe there'd be no presents.

So, I don't ever remember a time when I really believed in Santa, I was always a bit suspicious, but I do remember all the fun of Santa, laughing that Santa always requested we leave out food that dad liked. And I'm sure mum would have KILLED us if we'd ruined it for anyone else. KILLED us.
I do like the idea that mum and dad, while being very vague about many things, would always tell the truth when directly questioned. I don't think I've ever doubted their honesty. And maybe them lying about Santa wouldn't compromise that trust, but we didn't need to believe to still enjoy the story.

Hope that helps anyway, from some parents who are planning on vagueness and then honesty when directly questioned.