An "Applause" Acoustic/ Electric is a good bargain. You can get a shallow body (thinner & easier to reach around & hold) For around $175 new or even cheaper used. Solid body electric guitars are not the best to learn on, and you need an amp. An Acoustic/ electric makes beautiful sound unplugged, and when he's ready, it can be hooked up to an amp so everyone can enjoy.
They even make "travel" sized bodies that are smaller & better fits for the young ones. I took one of these with me when I was deployed to Saudi Arabia.