How many of you believed in Santa Claus when you were growing up? Turns out, it may actually be a normal and healthy thing to do, for kids that is.

According to psychologists, this helps with development. While Santa may be a myth, its powerful tradition for many families may reinforce good values.

"I don't think it's a bad thing for kids to believe in the myth of someone trying to make people happy if they're behaving," said Dr. Matthew Lorber, a child psychiatrist at Lenox Hill Hospital in New York City. "Imagination is a normal part of development, and helps develop creative minds."

Santa is based on St. Nicholas - a real person who became famous for giving gifts and money to the poor. Lorber told LiveScience. "It's a real story, it's a real value and it's something that inspires children," he said. That's the spirit of Christmas, though today's consumer culture may have drifted from that spirit a bit, he added.

Because children use their imaginations all the time, believing in myths, and fairy tales like the Tooth Fairy and the Easter Bunny and more are among things that help them differentiate good and bad, and help those who lack the ability to write or tell creative stories.

Breaking the Hard Truth

The Santa story will eventually have to come to an end, and it is often a friend at school who will break the news that Santa isn't real.

When children ask their parents whether Santa is real, parents need to decide whether the child really is ready to know the truth, Lorber said. The best way to handle that is to ask the child if he or she still believes in Santa. If they do, it might be too soon to tell them.

"I think most parents have a good feel as to when their children can accept the truth," Lorber said. When parents do reveal the truth, they can tell their kids that the spirit of Christmas is real, and tell them about the real St. Nicholas.

What do you think? Should you lie to your kid about Santa? Or continue an elaborate lie in the name of development?