"I have no issue with the tooth fairy," says Melissa Brennan, a financial planner in Dallas who gives her children a relatively modest dollar for each fallen tooth.

"Children should be given a variety of experiences with money: Sometimes we receive money because we earn it, but sometimes it is a gift."

Over indulgence could be an issue in some families, but Brennan suspects that in those cases, the issue may be deeper than the tooth fairy.

Indeed, 3.6 percent of parents -- ahem, I mean tooth fairies -- leave a whopping $20 or more per tooth, according to a separate survey by credit-card issuer Visa. At those rates, don't be surprised if you find your child trying to speed the process along with a pair of pliers.

Make It A Lesson

Those who prefer to keep the fantasy of the tooth fairy alive may wish to turn the event into a teachable moment about the decision of what to do with the money after it magically arrives.

Do your kids immediately blow the windfall on candy or iPhone apps? Or are they forward-thinking enough to earmark some cash for things they will need in the future?

That is where parents can step in and provide some guidance.

You could teach kids about the popular "bucketing" approach to money management. For instance, putting some aside for spending, some for saving, and some for giving to charity in separate jars.

"Done correctly, the tooth fairy myth is useful in teaching young children about looking through the pain of loss, and being rewarded for going through something unpleasant which leads toward future growth," says Hank Mulvihill, a financial planner in Richardson, Texas.

For Claer Barrett, it was a surprise just how much emotion was generated by the idea of saying goodbye to the tooth fairy. It was as if she had just strangled Santa Claus.

"I have appeared on three national radio stations talking about my fairy death warrant so far," she says. "It encourages me that the message is getting through to parents around the world."

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