Read a handful of folk tales before you begin writing. This will help you brainstorm for ideas. Pay attention to current events or what may be going on around you. Use these events to come up with a folk tale of your own.
Imagine the world where your folk tale takes place and describe the setting by including small details such as colors, shapes, smells and sounds. If the world your folk tale takes place in is real and not imaginary, research the area. Find out the kind of homes people build there, what animals live in the area and the kinds of flowers that grow.
Give your folk tale a message. Note that this message or moral should come out of your folk tale without having to hit your readers on the head with it at the very end. Make an outline and try to visualize when certain events will take place.
Write your folk tale like you're telling your best friend a story. Use common phrases such as "Once upon a time" to let the reader know that your story is a folk tale or that it's make-believe. Use lines in your story that rhyme to make them easier to remember. This will help you when you tell your folk tale out loud so you won't be reading off a piece of paper as much.
Give your characters a unique voice. Share what they're thinking through dialogue and internal thought. Illustrate the relationships your characters have with one another by showing the conflicts they face and any tension that might be between them.
Build your plot around the message you want to send your readers, your characters and how you see them interacting with one another. Make it interesting and engage your reader right from the beginning. If you're having a hard time starting your story, start somewhere in the middle where the action is.
Provide your readers a satisfying ending. Keep in mind that this doesn't mean it has to be a happy ending, but the ending you write should fit the rest of your story.
Share the moral or lesson of your story at the very end, although the lesson should be apparent in the story itself. Read over your folk tale for any errors or missing information before you pass it along to friends and family.