This document discusses three types of folktales: folktales, fairy tales, and fables. Folktales are oral stories with unknown authors that are found in all cultures. Fairy tales typically begin with "Once Upon a Time" and involve royalty, animals, castles or forests, with problems of good versus evil solved through magic or repetition of three or seven, ending happily. Fables are very short stories with animal characters acting as people and generally take place outside, involving one problem solved through trickery that ends in a lesson or moral.