Tooth Fairy,Easter Bunny,or Santa Claus are all fairy tales. Children love fairy tales such as milkmaid and her pail, the chicken little story, there are a lot of these stories which mothers read to their babies to get them used to listening.
I have done so myself I always felt the little ones knew these are not true stories , but they loved to hear them, because something about them made them invent stories they themselves wanted to hear.
I remember my younger sister once told me about little babies she planted and they have blossomed into gorgeous infants. I was so thrilled I wanted to see them , but I wasn’t able to. Never did I tell her she was lying.
Fantasy is a very powerful work of imagination, it makes us imagine beautiful things and helps us to be creative when we grow up. I still love to read “Grimms Fairy tales”, it takes me where I’d love to be even though I know it’s only a fantasy.
Make-believe stories are harmless, I don’t see anything wrong to tell stories to help children’s imagination, listening habit and interest. I would not say it is a pointless justification for lying to children. We do not tell these stories to make children better liars but to improve their imagination.
https://sabethville.wordpress.com/2014/03/08/ 365-days-march 08-fantasy/