[quote=@PyroDash888]
Yes, but the modern Fable was popularized by Germans at the start of the 19th century during the romantic-period, as were the so called "Volksmärchen", literally "people's fairy tales", like Rapunzel and the Golden Goose and Red Riding Hood, called "Rotkäppchen" here. 
Mostly because of the desire for an identity as a nation, as Germany was divided up into hundreds of smaller states where the people felt they all should belong together in one whole country.
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Popularized and invented are two completely different things. Words are important, don't make use of them hastily.

[quote=@PyroDash888]
As you can see the whole "moral" thing is not a fairy tale thing, but belongs to the fable. Fairy tales are more or less "epic adventures with magic and stuff". Fairy tales mostly have the conflict of good vs evil, whereas fables try to teach morals like "do not steal" or "do not lie" etc.

Yeeeah and fables have talking animals and plants which always have the same character, the lion as the king, the raven as the misleading character and the magpie as the thief.
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So what do you call the stories that have fairies, epic adventures, talking animals [i]and[/i] a moral?

[quote=@PyroDash888]
Fables are different from fairy tales in a whole matter of ways. 
This describes it pretty accurately for a website in English. German websites are a lot more in-depth.

[url=http://www.differencebetween.com/difference-between-fable-and-vs-fairy-tale/]Fairy Tales and Fables[/url]
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That websight contradicted itself, according to its own criteria Red Riding Hood is a fable, lacks fairies and magic, lacks an epic journey, has a moral, has talking animals playing iconic parts, yet it uses Red Riding Hood as an example of a Fairy Tale. I will admit that at one point in history Fables and Fairy Tales were different styles of story telling but at this point in time the line between the two has become blurred to the point that the two words can be used interchangeably. Their are classics that use and discard elements of both, perhaps not the originals but a number of adaptations bridge the gap between the two to the point where the gap is virtually non existent. However not wanting to start a war with the nation of Germany I'll answer your question.

It is completely up to you. If you wish to write your definition of a fable you are welcome to, if you wish to write your definition of a fairy tale that is also perfectly valid. If you want to mix elements of both [i]I don't really care[/i]. Logistically speaking dust, aura and Grimm could easily take the place of magic so perhaps most of the stories by the broad definitions [i]would be[/i] fables. However if you want to include fairy like creatures, that is (depending on your interpretation of fairies) beings that bestow good fortune to the hero, or those that have other worldly powers and use tricks of the tongue and deceptive speak you are more than welcome to do it. I'm sure all of you have read or at least know the classic stories, Red Riding Hood, Sleeping Beauty, Snow White, Mulan, The Little Mermaid. Take your idea of a fairy tale (OR A FABLE!) and write what you want to, I'll judge them based on how much I enjoyed the stories and in small part how much of a children's tale they were. I'm not going to be judging you on whether you stayed within the lines of Fairy Tale Vs Fable.

Also for those of you that do want to include talking animals you could always convert some of the faunus characters. Like you could have Shiro the White Tiger and Emerald the Cat and Mokuren the Fox if you wanted. Just a suggestion.