When I started to read your post, I thought you were going to suggest something that I don't think anyone here has mentioned: Perhaps Nita's son should just get a job and then he can buy whatever equipment he wants!
When I was a teenager, I loved black & white photography. My parents bought me some cheapo photo kit with a plastic enlarger that worked, but not too well. So, I was like thirteen or something, and just like the trite stories say, I got myself a paper route, worked at it all summer -- saving every cent -- and after a few months I quit the route and bought myself a BESELER 23C that cost something like $700.
Refurbishing an old guitar is okay. If you have access to a good technician. If the guy's a clutz, the kid's going to hate it. It never hurts to work, save and then buy good stuff.
Mark W.