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There's no need to spend all that much, although many people like to overspend for various reason (show off, hobby, just because, ignorance, etc). As an enthusiast myself, I'm all for overkill and top of the line specs, but none of that is remotely necessary to enjoy games. Like I said, focus on the GPU first and foremost, so the kid can maximize his game time.
If she's buying him a monitor during BF, then he clearly has a PC already, no?
Post up his current PC specs and we can help you with what needs upgrading for that budget.
Another thing to keep in mind is that a gaming experience will only be as good as the monitor. If the monitor is crap, you can throw all your money at the PC and the experience will still be crap. What I'm saying is, make sure they're matched for one another. Don't build a 4K PC to game on a 1080p60 display and don't build a low end PC to game on 4K TVs.
edit - Personally, if I knew that my parents wanted to get me a PC and had $500 to spend, I'd just ask for the money so I can learn and build it myself (and add a bit more on top for the stuff that I want). Of course, this is assuming there's no desire by either parties to do it together, lol.
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