Well in case your copy of Elements won't work (which is unlikely):
GIMP is a good, free Photoshop alternative, and you can do layers, brushes, text, effects, magic wand, rotate/scale/skew, burn/dodge etc. You'll have to study up on the way it handles layers and copy/paste, but other than that it's not so different from PS.
Paint Tool SAI is only $10 and is built specifically for drawing/painting. It didn't take me long to learn how to use it and it's got plenty of useful features. (I like the selection painter and the ability to rotate the canvas). It also works very comfortably with a drawing tablet.
EDIT: And yes there is a good chance the upgraded Photoshop will have a lot of extra features you will not need, in fact it's probably got so many you wouldn't even have time to learn most of them.