I dedicate this one to my son - who lost his first tooth. Surprising he didn't ask about what the Toothfairy does with all the teeth she collects. He was more concerned with letting his first tooth go. Oh well.
I told my son basically the Toothfairy collects all the teeth (all the clean and well taken care of teeth...hey we gotta practice good hygiene) and has a special machine where she mixes that w/some glitter. Then POOF - you make fairy dust. Thats how fairies fly.