This is one thing that we've struggled with, well me more than my husband. I don't like lying to them, and that's basically what you're doing when you tell them about Santa, the Easter Bunny, and the Tooth Fairy. When they find out that these "people" aren't real, will they have problems believing other things you say? I'm not sure I want to take that chance.
What I've told my kids in regard to Santa is that he is based on a real person, and then give them the story of St. Nicholas, but that Christmas isn't about St. Nick but about the birth of Jesus. We've always centered our focus around Easter on the Risen Christ, not the Easter Bunny. The only thing we've "fudged" on was the Tooth Fairy. Our first was told about the Tooth Fairy, but now we just give them the money instead when they lose a tooth.
Hope that helps.
