it really depends on my mood, most of the time i ignore the kids after the fifth time telling me, " I know you did the puppets" or "I know how that works" they give up and move along.
If there older I tell them your right! Kids seam to want to be validated. I ask them to help me ( another things kids like to do: Help) keep the puppet thing a secret, it will ruin it for the little kids.
Most of the time it's not a problem kids have short attetion span.
Example:
Me: Welcome to my Puppet show.
Kid: I know how that works, your doing the puppets, your not real. Monkeys don't talk.
me: here kids I have candy!
kids: CANDY, I LIKE CANDY! WHERE IS CANDY?..... What were we talking about.