Those underwater shots of coral reefs and close-up action pictures of the kids on the water slide will not happen without a waterproof camera. You can buy the latest waterproof model, but there are other methods for protecting the camera you currently own from the destructive effects of water exposure.
Buy a waterproof case for your camera. While it is possible to purchase a waterproof case designed specifically for your camera model, this option can get expensive. There are less expensive generic waterproof camera cases that will fit most camera models (see Resources).
Wrap your camera in plastic or cling wrap. Rip off a long sheet of the wrap and mold it to your camera. Repeat this to ensure a good protective waterproof layer. Then use an exacto knife or a scissor point to carefully cut out holes for the lenses, snapshot button, power button and the settings controls.
Create a loose plastic enclosure for your camera. Find circular gaskets that allow enough space for your camera lens, as well as sturdy PVC piping. Create a 90-degree angle with one or two pieces of piping, then "fit" the camera to the device so that the gaskets fit around the lens and the piping supports the camera. Drill a hole or holes into the piping below the camera so you can secure the camera to the pipe using its tripod attachment. Take a plastic bag in a size that completely covers the camera, and cut a hole for the lense. Glue the opening of the bag in between two gaskets to create a seal, then turn the bag inside out to cover the camera and piping.