I consider a cheap guitar to be anything under $120.00, once you get under $99 it goes down hill, but that has been hashed over on here many times, and now and than even a cheap guitar can have a really good sound, it happens, but not often.
I think for anyone just starting out, anything &129.00 or up is a good starting point, guitar and amp packages are a solid choice for a beginner, I say that because you don't want to make a big investment only to find out six months or a year from now playing the guitar just isn't your thing, it happens more often than you might think.
There are a few things to consider when buying a package deal, on the low price end, if the package comes with a tuner, a guitar cable, and strings, you will want to replace those items soon as possible, the strings will be cheap, as will the guitar tuner, and the guitar cable will begin having static and cutting out within 3 months, if not sooner.
Those amps lack get up and go as well, you pick up a pedal or two which will wake up the sound of the amp, a low price distortion pedal is a good first pedal, even if the amp says it has built in distortion, adding the pedal will be a big improvement. If money is no problem than shoot for the stars, but you may be kicking yourself a few months down the road if playing guitar is no longer a priority in your life. That first guitar will get you by for the first year, after that, if your still playing, upgrade to a higher priced guitar.