None of my kids ever believed in Santa Claus. When my DD10 (oldest also) was 2, we spent Christmas with family away and she really didnt pay much attention as to where the presents came from, but the next year she was 3 and my relatives started really early with talking about Santa to which she replied "that doesn't make any sense" They tried to convince her so she asked me. I asked her my usual first question "What do you think?" She went into a long explanation as why it didn't make any sense and that was that. I wasn't going to lie to her when she was right. From then on, we get a tree. We buy all our kids one really big gift and fill stockings from us to which they are just as excited to wait until morning to see what's under the tree as when I was a kid (mostly because its the kind of gift they would not get any other time of year--like the swing set or ipad). My husbands tells them about why we celebrate Christmas and Santa is put in his historical context and they still love Christmas.