I have the Roland Micro Cube for an amp. More than loud enough to practice and jam with, enough inputs and outputs in it so you can play music and jam silently with headphones on. Has a bunch of effects to get the right sounds you want too. It's also A/C or battery powered so when you get campfire good you can bring it along.
The Roland is a really nice little amp. I don't have one but I've played with one quite a bit. I would recommend getting one of these small amps with a couple of effects. That way you don't have to worry about buying pedals right away. I have the line 6 - it's pretty good I also have the fender mustang. I prefer to practice on the Mustang as the controls are more intuitive and you can hook it into your computer for both pre and post effects as well as amp modelling. For any of these I don't think you would spend much more than about 150. As for the guitar, I would strongly recommend spending a few extra bucks to get one you won't tire of too easily, as well as the better quality.