I love Santa and so does my little guy. I realized he really gets this Santa concept when he was sent to bed early the other night for being naughty.
He was crying hysterical and spoke "Waaaaaah, Mommy. Santa sees me when I am sleeping waaaaaah, he knows when I'm awake waaaaah. He knows that Patey and I haven't been nice and we aren't getting any toys waaaaaaaaaaah!".
We all decided an apology note was in order to Santa.