| It's hard to get anything great for that price, but one alternative could be to get a Behringer mixer (those are actually really OK IMO) with effects for 100-200 dollars, and a couple of cheap-brand active speakers or some used ones for about 300 each (if you can find something that cheap). If you lived in Europe, I'd suggest a pair of T-box active speakers from Thomann, but perhaps you have something similar in the US too.
Powered mixers can be OK, as long as they have enough features and enough power. I have some experience with cheap 6-channel sets with speakers included, and those were really crap. But I've also played with one that was really ok, that one was more like a regular mixer with most features you need in a mixer plus power amp. I don't remember which brand it was and have no clue about the price).
Check out what used stuff is available. Try to buy either a good mixer or good speakers if you cannot get both of good quality. If both are too cheap and crappy you might want to buy a completely new set later...
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