This was our first year with an elf.  Our almost 3 year old loved it!  We had to explain a few things (and a few times), but she picked up the concept and each morning when she woke up she went looking for our elf!  She liked how he was in a different spot each morning.  I was a little worried about her touching the elf and wanting to play with him, so at first the elf was high and out of reach.  As the days went on though and we quizzed her about the elf, she knew not to touch him and would get very upset if I went anywhere near him because she didn't want the elf to lose his magic!  So, I'd say our elf is a success and a lot of fun to have around at Christmas.  Our little girl is already thinking ahead to next year when the elf comes back!