The motors aren't waterproof and don't need to be, they will run underwater, although it's not good to do for long periods of time. Puddles are not a problem. Lipos and water are a very bad idea. Nimh packs due to thier construction/cell type actually will also run under water (even open side by side packs with no shrink wrap). I've seen it.

I wouldn't due it with my stuff and don't know how long they will last doing it but it does work.
Basicaly let the your 7 year old hit the puddles and have fun with no worries.