A Conversation About Santa

DD2: Does Santa live on earth?
DD1: Yes.
DD2: It does not look like he lives on earth, Mommy.
Me: Why do you say that?
DD2: I've never seen elves on earth. I think he lives on another planet.
DD1: I think he lives on earth. He speaks English. He doesn't speak alien at all.

DD1: Remember when we saw Santa Claus and Mrs. Claus in our school?
DD2: They were just in costume!
DD1: No, they were not!
DD2: But how did they get there? Where's Rudolph?
DD1: I think they were real.
DD2: I think those were just costumes!

I chose to remain silent on the issue. When they asked what I thought, I'd answer back with the classic, "What do you think?" That has gotten me out of sticky question/situations before. Haha.