My first 2 cars were bugs!! '65, then a '69. The first one was the better of the two, but they were both fun as hell!
I still maintain that the original VW bug is the ideal first car for kids:
Dirt simple to operate and maintain
Cheap to drive, sips the fuel
Cheap to insure
Just enough power (stock) to get into traffic quick enough
Not quite enough power (stock) to get into trouble!
Fun to drive, and teaches inexpensive lessons on car ownership