Guitar, Amp, Instrument Cable, Headphones, Auto-Tuner, Metronome, Capo, Picks, Strings, Stand, Strap, Bag, String Winder, Polish & Cloth

Don't make them spend more than ~$200 on this. Consider pitching on for some of the accessories at least (though be aware that some of them are quite necessary right off the bat, such as a tuner).

You won't be able to appreciate the difference between a $100 guitar and a $5000 guitar by sound for at least a year and just to get started you need a bunch of supplies (see list above) and the cost adds up quick.

The guitar won't break unless you abuse it. Squier instruments are decent. In fact, you could even get something like a First Act at Walmart for under $100 and still not be able to appreciate the difference for quite a while.