Lively, the new face of Chanel's "Mademoiselle" handbag, was honored at a Chanel dinner on Wednesday night.
The 23-year-old "Gossip Girl" star said her mother was a model, so she was always exposed to beautiful clothes. Her mother would also make clothes, so she would go with her mother to buy fabrics.
Lively said confidence is the key to making an outfit work, and even if critics may not like her choice in apparel, she said as long as she is being herself, she loves it.
Lively plays the role of Serena van der Woodsen on CW's "Gossip Girl" and has been in movies like "The Sisterhood of the Traveling Pants" and "The Town."
The Associated Press contributed to this story.