We live in an extremely diverse area and DD has friends of literally every race and religion I can imagine. I have explained to her "Different people believe different things and that's ok. It doesn't mean one person is right and one person is wrong - just that they believe different things. When you get older you will decide what you believe in and that's fine too." This has come in handy over and over again - why does this friend's mother wear a hijab or that one's father wear a yarmulke, why are these 2 women married to each other, why does that friend wear a cross and talk so much about Jesus, etc. And yes, she most certainly understands that not everyone believes in Santa - and that is ok too. She doesn't try to change their beliefs and is being raised to respect the differences in people.

On a similar vein to debunking Santa DD has become a "little sister" to one of the teams at DH's university and has grown up with the team mascot. A couple of years ago an older friend, probably 8 at the time, told her he was "just a guy in a costume." DD was sad at first but then started telling other little kids the same thing. I asked her not too - it was much more fun for them if they could just think of him as a big, friendly bobcat. She understood and never told another kid. I have to say the only time I ever really got offended was when a ballet teacher asked her to "kiss Jesus" when DD asked about the crucifix she was wearing. That was an adult disrespecting whatever our family may or may not believe in - not a child passing along "grown up information."