I don't remember ever actually believing in the tooth fairy (or Santa Clause). I also don't remember ever having a problem with the world in which parents told their kids that fictional beings existed and would give them money or presents; it seemed so obvious, and harmless. I was happy to put my tooth under the pillow and get money–it was a soothing ritual. I remember thinking it was freaking obvious that Santa Clause was my parents, but putting out cookies for "Santa Clause" was sort of a fun family ritual anyway.

I wonder what makes the difference between a child who has my outlook, and a child who is disturbed by the fact that either magical beings exist or their parents are lying.