Daddy, is Santa Claus real?
Nope. Sure isn't.
Daddy, where do babies come from?
Sex, a thing that boys and girls do sometimes. Penis + Vagina - Contraception = Baby
Daddy, do people buy those Camry things alot?
...No honey. The world wouldn't do that to us.
The world is a cold place. Sometimes you have to lie to your kids about it. You just do. They're just not old enough to handle the raw truth.