Great discussion.

In our case, my daughter had been suspicious of the Tooth Fairy for a while. She asked me at some point as we were piling into the car, so I told her. Turned out she really was just testing me because she'd heard a friend say the Tooth Fairy wasn't real--what she'd really was expecting to hear was that the friend was wrong. Belatedly, a good friend told me you always say "What do YOU think," first, which I thought was very good advice.

I really like the advice to sort of wink-wink playalong idea, too. My DD has since lost a tooth, and she seemed to have fun pretending the Tooth Fairy would still come (and, of course, she didn't mind getting the dollar...).

(Grinity--that is really funny!)