Tsk tsk, she's a late bloomer. It's a kinda bad practice to me, but if you teach your kids about Santa, then you are prepping them to have reasoning skills. Everyone around them says Santa exists, you have presents under the tree from Santa, and the other kids get presents too! Therefore, Santa exists. Them eventually realizing that he doesn't really exist is a little badge of respect from me. They get the next badge when they reason out that Church Santa has even less evidence than Christmas Santa.
Ya know... Church Santa. In the books about magic, and a big other floaty invisible Santa, where he makes the big gift of the universe, and this is before he used coal for naughty kids. Usually he sent them to Hell.
He's talking about God.