Elegant in its simplicity and all work design. Straight blade might be easier for a beginner to sharpen? Thats a really nice looking knife.

That is a good price, they cost £20-22 (that's in British pounds, equivalent to about $30) if you buy from the source:
http://www.sheffieldknives.co.uk/acatalog/Folding_Knives.html

These knives are so tough even buying second-hand might be a viable option. I've seen surplus clasp knives sold at pretty low price, many in excellent, barely used condition.

$30 is not dirt cheap but IMHO well worth the money. Keep in mind it's the real deal, made in Sheffield - once the cutlery capital of the world, still known for superb blades. These are built to last many decades of serious use. I've seen heavily worn examples that have been in nearly constant use/abuse since WWII and are still going strong. A SAK may have more functions but the Brit clasp knife is going to be just as practical and more durable if the quality is anywhere near what it used to be.

My comment on the cost of the British knife: it's going to be given to a child who could easily lose it.

True, and thats a valid point but IMO it really depends on the child and how they're raised. A first pocket knife can really be something special to a kid. In a way it can symbolize responsibility, maturity, exploration, etc, etc. FWIW, I know plenty of adults who are way more careless with their things than children.

Generally, for a child that age, anything over $10 is a waste.

Have you considered an Opinel? Locks open, has a thin blade that cuts with little effort, and is disposable. You could file the blade into a sheepfoot for safety and spray-paint the handle red.

A first knife is indeed magical to a kid. But that doesn't mean they're ready for unsupervised carry. I think its primary purpose should be learning respect and responsibility under adult supervision. I borrowed and repeated the 'tools not toys' speech to my nephew until he repeated it back to me every time his knife came out.

FWIW, my nephew's first knife was one I modified from a broken butcher knife. I rounded the entire thing with a grinder. Then I added a cutting notch close to the handle, about 1" wide and inset about 1/2". You could fall on this and likely not hurt yourself. Yet it cut bark, grass, and rope, and made kindling quite effectively. I added a sheath made with olive drab canvas and black duct tape, and he loved it.

I don't know about that line of thinking. The first knife my dad gave me was something of a family heirloom. Not necessarily in the sense of $ but it certainly had sentimental value. My dad got it as a present himself when he was about 10 from his aunt who travelled in Scandinavia at the time. Just one more reason why I felt even more responsibility to look after it. I remember I nearly lost that knife one day and it seemed like the end of the world. Considering how a lot of adults tend to "misplace" their belongings I would say many kids are less likely to lose a pocket knife.

I've never lost my one since I aquired it many years ago and my father never lost it either when he was given it as a boy. I actually found it in my grand fathers old wooden tool box in his shed. I was pretty happy when my grand father said I could have the knife saying that my dad didn't appear to need it any more.

BTW the knife is the older non locking version and is probably over 50 years old or older.

Ha, good old "oil the joints!"...

If you look at the markings (military broad arrow mark in the mid-right portion of the handle scale) the year of manufacture seems to be 1953 if my eyes serve me right. So that would make your knife over 50 years old indeed.

A wonderful piece of kit! Well, this thread has just given me a good idea for a Christmas present...

Well, with all due respect, we're talking about a first-grader here. Most of them would lose their own feet if they weren't stuck on the ends of their legs.

A perfectly serviceable blade can be had for $10. The big investment is the time an adult spends teaching them how to use it properly. These are important life lessons and are beyond price.

When a child demonstrates the maturity to use a blade safely and responsibly, by all means get 'em a better one. No objections from me.

(EDIT: Whoops, I goofed, I was intending to respond to Tom_L's post further up the page.)

Oh and if anybody fancies a little history on these knives here's a good link:
http://www.britishblades.com/forums/showthread.php?t=63126