Wash and dry the apples. Insert a stick into the top of each one.
In a medium saucepan, place the caramels and 2 tablespoons water over low heat. Stir the caramels until melted, about 3-5 minutes. For thinner caramel, add one more tablespoons water.
Remove the caramel from the heat, then dip the apples in the caramel (this should be under adult supervision). Allow any additional caramel to drip off back into the pan, then place the caramel-dipped apples on a silicone baking sheet or parchment paper. Before the caramel has set, apply the sprinkles so they stick in the caramel.
Allow the apples to cool completely before serving.
To make caramel apples easier to eat for small kids, it's a great idea to slice them into smaller, bite-sized pieces. Serves 6.