Digital camera lense cover won't shut - fix it, or buy a new one?

[Learninggentleness]

I have a Kodak Easyshare 3.1 mp digital camera. It was given to us several years ago. Since the lense cover won't shut anymore, the lense is exposed and getting smudged and possibly scratched, at times. :nails I just found out yesterday that the estimated cost to fix it may be around $115. :eek I feel like I may as well buy a new camera since it costs so much to fix it. But, we don't really have the money to do so right now (my birthday is next week, but I wanted to buy some new clothes). And, I don't know what camera to buy. There are so many options out there. I definitely want more mp though...3.1 is not sharp enough for me.

Any reccommendations (fix it, don't fix it, camera choice, etc.)?