How to get your terror to count - campfire upgrade chart

I have found this to be helpful. However, my question is this: do the storyteller and kids making s'mores just generate nightmares? In other words, the counts for the nightmares don't seem to be going into my inventory. And yet, I also don't seem to see as many as I should around my town. I have all the kids, including the premium ones, and should be getting a lot of nightmares by my count (20+ kids times at least two, more for the premiums, plus the storyteller) but I'm lucky to get thirty "points" for my campfire upgrade.