Fireworks and Family Feasts

At Chinese New Year celebrations people wear red clothes, decorate with poems on red paper, and give children "lucky money" in red envelopes. Red symbolizes fire, which according to legend can drive away bad luck. The fireworks that shower the festivities are rooted in a similar ancient custom. Long ago, people in China lit bamboo stalks, believing that the crackling flames would frighten evil spirits.

The Lantern Festival

In China, the New Year is a time of family reunion. Family members gather at each other's homes for visits and shared meals, most significantly a feast on New Year's Eve. In the United States, however, many early Chinese immigrants arrived without their families, and found a sense of community through neighborhood associations instead. Today, many Chinese-American neighborhood associations host banquets and other New Year events.

Chinese New Year ends with the lantern festival on the fifteenth day of the month. Some of the lanterns may be works of art, painted with birds, animals, flowers, zodiac signs, and scenes from legend and history. People hang glowing lanterns in temples, and carry lanterns to an evening parade under the light of the full moon.

In many areas the highlight of the lantern festival is the dragon dance. The dragon—which might stretch a hundred feet long—is typically made of silk, paper, and bamboo. Traditionally the dragon is held aloft by young men who dance as they guide the colorful beast through the streets. In the United States, where the New Year is celebrated with a shortened schedule, the dragon dance always takes place on a weekend. In addition, many Chinese-American communities have added American parade elements such as marching bands and floats.

I got this information from infoplease.com