My sister and I never believed in Father Christmas. I'm actually quite gullible but never bought into that one! Our parents were/ are very religious and have always been a bit disapproving of FC being the main focus of Christmas. Their approach was to say there's a tradition that children hang up a stocking and it gets filled with small presents and the tradition started with St Nicholas etc .... They never advertising said FC actually comes down the chimney and we never asked.
My husband thinks it's really sad and a shame that we didn't have the magic of believing though honestly I dont feel that I missed out. It was still absolutely thrilling to go to bed with an empty stocking and wake up with a full one! And the "magic" never wore off because it was never spoiled by the realisation that FC isn't real. On the other hand my husband recalls being devastated age 6 when his older sister told him the awful truth and felt Christmas was never quite as special after that. That seems sad and a shame to me.
With our own children I planned to do similar to my parents but somehow couldn't resist the "big sell". My son (eldest) has ASD though so he was never particularly awed by FC, just the stuff that arrived! In our house FC does stocking gifts and it's always been clear that the big gifts under the tree are from us, though I've always bunged a couple of quite small but exciting things in the stocking.
At around 7 he started to ask me "is Santa a fake?" And I'd say "I don't know. What do you think? " and he'd end up saying that he'd concluded Santa is real. We thought he was hedging his bets in case the stocking didn't get filled but he confirmed years later that at age 7-8 he wasn't quite sure but by 8-9 he'd worked it out but was happy to play along.
Our second child was born when he was 9 and it all started again. Unfortunately she was terrified of FC as a toddler so we downplayed it at first. But we had a couple of absolutely magical years ahead 4-5 where she really did believe and was beyond excited that "he has been!!!"
Age 6 less excitement. Also a lockdown year so no Santa grottoes etc. Thrilled with the stuff, not much mention of FC. Last year, age 7, took her to see FC and she couldn't have been less interested so it had definitely gone for her by then. No devastation or disappointment. She's very sharp and not much gets past her! She also declared last year that she thinks I'm the Tooth Fairy. I think lockdown allowed for an FC slow fade. We've still not acknowledged out loud that he isn't real and she seems happy to play the game.
The funny thing is that when our son was about 12 (he's 17 now) he heard us discussing youngest's stocking presents and said "Wait, what, so it's YOU?" We were a bit shocked and said oh no, did you still believe? He said no, he'd worked out a few years back that FC isn't real but he didn't think we put the presents in the stocking either and he wasn't sure who did. The reasoning was that the wrapping paper was different and he'd never seen it in the house. I explained that was part of the fiction and he looked really shocked. Not sure if he was impressed by my planning or aghast at the extent of my deception!
So what is best? I don't know. I still think it's nice and fun but probably keep it light.