Like Kathleen already explained, kids know we exchange gifts with each other. They don't think that everything comes from Santa. Then, on Christmas morning all the presents that Santa brought magically appear under the tree, when in actuality, mom and dad had them hidden somewhere else until Christmas Eve. I still always thought that Santa came to visit, because there were more gifts under the tree on Christmas morning. Nothing was ruined. Plus, it was always fun to know that there was something under the tree for you...I would sit there and shake them trying to figure out what was in the packages.