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The incident happened at around 8.30pm yesterday on Peasehill Gait in Rosyth.
Detective Inspector Christopher Dow of Glenrothes CID said: "Thankfully no one was injured during this incident, but it was an absolutely terrifying experience for the family.
"Following a house alarm being activated, the suspects ran from the house but not before they managed to find cash within.
"The crime is likely to have required a degree of planning and it is possible the suspects had been in the area prior to the robbery, checking the address and the family's movements.
"Peasehill Gait is a residential estate, so a car out of place or seen parked up for some time with people inside might have been spotted by local residents.