Musical instruments are one of the few things where the very best is whats most suitable for a beginner. It's not like giving a Ferrari or R1 to a 17 year old and it overwhelms tham, if you can afford a £1000 guitar to play on it makes it far easier and enjoyable to learn.
Being practical though, the Squier Standard Series at about £179 are fine guitars that play very well and make good guitars for any player. The Squiers you see for £120 and less are more hit and miss.
Giving even a keen beginner a cheese grater is almost certainly going to put them off, I thank my parents that they got me a good guitar and I stuck with it, ahhhhhhhh.
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