Most parents do NOT tell their kids that Santa Claus, Easter Bunny and Tooth Fairy are make-believe. Who'd want to spoil the fun of believing in these entities? Sensible parents let their kids figure it out on their own. They know that one day, a child will realize that it's impossible for a man to slide down chimneys or supply every house on this planet with gifts in only 24 hours. Some kids suddenly realize the truth while others wrestle with wondering for a long while and gradually realize the truth. I'd say that by age 8, nearly every kid has figured it out for themselves.