Recommendations for a sub $40 survival knife

Ontario SP2 would get my vote, and I keep a multitool in the pouch


 
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The Ontario SP1-to-3 are good possibilities.

Of course that depends on just what you're intending to survive.

Is it really survival if you can pick which situation you're in and prepare specifically for it? ;)

But I get what you're saying, he should study the environment he'll be spending time in and fit the tool to the likely tasks it will face should things go bad while he's out there.
 
Condor. I've heard lots of recommendations for the Hudson Bay, but I'm here to spread the love on a couple of my favs. Want the BK9 but can't muster the coin? Try the Kumunga. Want it shorter but still awesome? Try the Varan. There is an even shorter one, but you wouldn't be chopping with it. Good luck!
 
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