There are a wide variety of celebrations that take place during the Chinese New Year, and multiple customs that are also observed along with it. Children are given hongbao (红包), little red bags with a small bit of money in them. Red represents fire, which is supposed to chase away bad luck (White is unlucky because it represents death in Chinese culture). Often, the character 福 (fu) is hung upside down on the doors of houses; this is related to 福倒了 (fu dao le), which means, in effect, "luck returns". However, this version of "dao" also means reverse or upside-down; so it's... kind of a pun, admittedly; may your luck be upside down/return this year. You avoid saying the number 4, which sounds like the word for death; you do not use knives, scissors or brooms, and do not wash your hair, as all of these could take away the luck of the new year.
One of the primary festivities is the Lantern Festival, held on the final day of the Chinese New Years celebration (a celebration that last fifteen days from beginning to end!). On the day of the Lantern Festival, there are a plethora of lanterns hung from every available surface, and children carry with them their own lanterns - either self-made or purchased fairly cheaply. Multiple dances are held all throughout the cities, and at night, firework displays are common and serve to accent the full moon in the sky.