The first one are stories to prevent something. These stories are completely made up, but put fear in the kids to they behave as they should.
The second one is looking from a distance (or a 3rd person) at yourself.
I wonder if religion falls into the first bucket. "Behave or you will go to eternal hell". Lots of people already figured out that it's all made up. What is not clear is that, although made up, it could still have a lot of benefits.
The second technique is probably what meditation and NLP (Neuro-linguistic programming) do. Take a step back and look at yourself, your emotions, your behaviors, as an observer.