I totally disagree with this.
If the kid is trying to be a real bassplayer and join up with friends to jam, they're going to have to practice, and he's going to want to be heard over his drummer and guitarist/keyboardist/whoever
You don't wanna be the dude who has to borrow gear from other people all the time, or rent beat-up, unreliable stuff from a local store everytime you want to rehearse or play a show, that stuff adds up in your wallet and your rep...trust me - I used to be THAT GUY.
You can get a nice amp for the money you have there - look for good used deals, but do some research around the forums - there's a lot of crap out there too.