I'm not sure what the relatives will give him, but I can't see him having more than around $300 or $400. Problem is, he has to find a cheap amp also with that amount of money.
I do have an older Fender amp that needs repairing, which is also an option, but I didn't even get into that. LOL!
He can actually get quite a little setup with that kind of money these days. Check out Musician's Friend to see what I mean. As several others have mentioned, the Fender Squires made in Mexico are good guitars at modest price points. He should be able to get a guitar, amp, gig bag, and nice cord for $400ish.
Hope this helps.
MM