Well, from the looks, the kid seems capable of handling a knife. My son is eleven now and has been using knives since around that same age.
I started with a plain Mora clipper, but Milani's suggestion of the "Junior" model is a real good one.
Teaching basic safety and knife use is much better with a fixed blade. Kids (at least mine

), often leave tools laying around and don't police them up; chances are a folder will quickly disappear. Knowing that a fixed blade is either in hand or on the sheath is much easier to teach. Being able to get a full grip allows you to teach proper hand holds and how to safely cut away from the body.
Lastly, where Mora's benefit the most, is that they are inexpensive...this makes them easier to teach sharpening and blade maintenance. My son's best lesson was leaving a wet Mora carbon steel blade in it's sheath over-night...the colorful rust was a good visual of poor blade maintenance. After a little admonishment, he quickly learned to care for his blades!
Axes and hatches are excellent tools, just not at that age. Even if they could be trained well, I've found most young boys lack that dexterity and control needed to properly and safely use an axe. Even with my boy, I closely monitor his use with an axe at age eleven. I know it sounds stupid, but I feel more comfortable with him and a small machete than an axe
Here was my son's first folder, a Benchmade Mini-Grip:
His first fixed blade was a Mora Clipper with kydex sheath:
I gave him my old Air Force Survival knife that I'd had since I was about his age. Cleaned it up, sharpened it and picked up a new sheath and it's as good as new!
Lastly, like Fixer's picture, I decided to get my son a "real" bushcraft blade. I Went with Brian Andrews and couldn't be happier. Just a word of advice, measure the boy's hand...Brian's standard model is sized for about a 6 or 7 year old, but it was a little too small for my son. After Brian made a switch for me, it actually works for me quite well also, so it'll last him a lifetime! Brian's knives are top notch like all the makers here on WSS and there's nothing more lasting for a boy than a custom made knife
Here was what Brian Originally sent me (the one that was a tad too small):
Brian was very gracious after I made my mistake in measurements, so he replaced the smaller one with one a little larger:
As to folders, I really liked the Mini-Grip when he was younger. He has since saved up $$ and purchased an Emerson Horseman which is his pride and joy. If you go with a SAK, make sure it's a locking blade version and the One-Hand-Trekkers are much easier to open for kids.
I would suggest a quality, inexpensive fixed blade...something to learn about safety, responsibility, accountability, maintenance, sharpening, handling, etc. After a few years, a nice WSS-member custom blade would be a real gift:thumbup:
ROCK6