As a Christian, the question of whether to tell my children the story of Santa Claus came up. I did tell them the story, there is just too much exposure about Santa Claus to not tell them the story, and it is a charming childhood story. The problem for a parent is that you don't want to make the story real, and then have to tell them later on that you lied to them about that, and he isn't real. (They didn't believe the Goldie Locks story, but loved to hear it... and they were not harmed in hearing it.) Stories can be just like parables in the Bible, as long as you explain they didn't actually happen, they are just stories to tell an ideal in an entertaining way.
I always told my children as they were growing up that Santa Claus was a legend made up about Christmas, because Christmas is about God's great gift to the world. Gift giving at Christmas and all the presents are just to remind us that our Heavenly Father loves us so, and "gave His only begotten Son." I told them I like the enchanted stories about gifts... and that with God, who is the real reason for the season, He doesn't care if you have been naughty or nice, you can have His wonderful gift... because by it, He forgives all your "naughties..."