M.B.
I have an excellent waterproof, shockproof camera, however, its a little more than $200. Its an Olympus 1030 sw. I think I got it online in a kit with a mini tripod, charger, and extra battery for $250. It is the best camera I've ever owned. My 4 year old son uses it regularly. (He seems to have a real interest in photography even at 4) We let him take it to the pool, all around the house, with us on vacation to Schlitterbahn. He does very well with it. It takes great pics in the water, and it can take a pretty good beating as well. I think as long as you know he can keep up with it, that its a great investment for the whole family!