This made me wonder.

A female coworker was telling me of her boyfriends daughter. The girl (daughter, not the coworker) is 7 years old. Her dad does not keep secrets from her. She knows there is no Santa, Easter Bunny, Tooth Fairy, etc... She still gets gifts and what not for each holiday. She also knows not to tell other kids.

My thought is what does this do to a childs imagination? My kids still believe in all of that, the oldest is 8. I know soon he will grow out of it but I also know his imagination is very active, as is the other two.

My co-worker stated that this girl acts alot like an adult. While sometimes I wish my kids acted more mature I also know that they are kids. I remember doing the thinks that they are doing now. It's part of growing up.

It's probably more important for adults to believe in magic and myth than children. 

To a child, everything is magic.  They have magical beliefs to spare.

Not so adults.

That's why this saddens you.

Last year Georgia, who turned eight this January, asked me if Santa was true, as she had heard differently from the kids at school!!!!
At Christmas, after she opened up her special present from Santa, she turns around, and say's "Mum, how come your writing is on the card from Santa"!!!!(I nearly died). She knows now, and she knows not to tell any younger children about it.

\m/ hail Santa \m/... oh, wait, nevermind.

Zoe (soon to be 10) figured it out last year but either forgot or chose to ignore the facts this year.

Of course 2 years ago when she first asked the question my reply was...

If you don't believe, you don't receive. 

I really don't think it hurts her imagination to know that there isn't an easter bunny, etc.  Kev and I grew up knowing that there wasn't.  Our imaginations didn't suffer; instead, we made up our own stories.  My other little siblings also know that there aren't such things, and I think my sister has a great imagination.  I could be biased, but if you were to listen to the stories she tells, I think you'd believe me.  I'd say she tells stories about 4 hours a day, at the least!  SERIOUSLY!

So I don't think it hurts a child's imagination.  On the contrary, I think it can encourage them to really use their imaginations to come up with their own things to pretend about.

My oldest two (13 and 10) are over the Santa stage, but still pretend for the sake of their little brother (5). When the 10 year old said she knew I was Santa, I explained to her that Santa lives on through each of us. That as long as we believe in the spirit of Santa, children will always wake up to the excitement and joy of an early Christmas morning. She and the 13 year old are still excited to wake up and see what they got.

lol - more of your questions might be answered if you listened to my sister for just one hour.  Then multiply what you heard by four.  What you come up with would explain part of the reason I enjoy peace and quiet so much (when there is a moment of quiet, that is), and also why I don't talk all that much.