The kit lens Canon supplies these days isn't all that bad. It's actually head and shoulders above the old non-IS version that came with my old Rebel XT. It's sharper, has better color and contrast, and an IS system that I'm told works very well. Starting out, you will also appreciate having a focal range, rather than just the single focal length of a prime.
As already mentioned, the 50mm 1.8 is the only real "budget prime". It's IQ is quite impressive given its price. It's worth owning as a first prime, but be aware that AF with it is slow, loud, and hit or miss in low light. Also take into account the crop factor of the body makes it "effectively" 80mm, and as enzodm stated, it can sometimes be a little too tight for indoor shots.