Elf on the Shelf

For those who don't know about the Elf on the Shelf, he's a little guy who watches the children during the day and at night goes back and reports on the "niceness" of the children to Santa.  The Children can't touch him or else he'll lose his magic that day.  He moves around to different places each night.

He's been a tradition in our family for 2 years (this will be the third). When Kate was 4 she named him McGiggle, and that's been his name ever since.
Elf on the Shelf Link

He just appeared this morning on a window ledge. The kids were VERY excited to see him this morning.  After breakfast I heard them talking.

Faith, "Do you think Mommy put him up there?."
Kate, "I don't think so, Mommy's always so tired, and Daddy doesn't like to get up."
Faith, "He doesn't look real, he looks like a doll."
Kate (sounding a bit exasperated at her not quite completely believing sister), "That's how he's supposed to look to children."
Faith, "I don't see him breathing. I wonder how he holds his breath that long,?"
Kate, "He probably just breathes through his nose."
Faith, "But I don't hear him?" (as she noisily breathes through her own nose to show how it sounds)
Kate, "He's probably just like the toys on Toy Story."
Faith, "Okay" (She seems pretty satisfied with that response, thank you Pixar!)
Kate (with all the sincerity and earnestness in the world in her voice) "I believe in him, I do believe. And I believe in Santa too."