I agree with Toregone ~ children's fears are generally 'real' so giving them tools to fight those fears has more success than trying to just tell them they do not exist ... making a monster / bad dream catcher or monster be gone spray (lavender water) are a few things I have seen work so the children has the power when the fear comes along to direct it toward something concrete ~ spray their spray or tell the dream catcher to 'get it' and so forth.
The 'monster' spray worked like a charm for us...instantly! We used water with vanilla in it (it was all I had on hand that would give it a scent).
Children are great imitators.
So give them something great to imitate.
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