My daughter is 7 1/2 (Year 3). She is right on the cusp of not believing in Father Christmas any longer. Her older sister (10) knows that we fill up the stockings and I have no problem with my younger DD no longer believing. My problem is that if we confirm that Father Christmas isn't real then she will immediately tell her class-mates. (She will do this even if we ask her not to as she is extremely impulsive) We moved to a new school relatively recently which is much more MC than her last school and lots of her friends parents are a bit PFB about their kids. Most of her friendship group don't have older siblings so she is already perceived as a bit more "sophisticated" (in a bad way!) by the parents. In my shoes would you keep "Father Christmas" going another year for the sake of giving her class-mates another year of innocent wonder?