I would highly suggest melting them in a double-boiler. As well, this time of year, many specialty food retailers (like Whole Foods Market) carry kid-friendly, microwavable caramel apple wraps.
Melt 1/2 stick of butter then add the caramels. While everything is still hot put an apple on a stick and dip into mixture and cool on parchment paper.
You can melt them in a double boiler. Be careful not to burn it. You don't have to add anything. You can add things for a twist if you like though like chopped nuts and such.