For under $500, you can get a 4 shelf, with 2 doors below. OK, maybe not mahogany or cherry. But for starters? A Formica over particle board is just fine. That way, when they are ready for an upgrade, they can move the $500 in to the kids room.
I find it funny that people think a young couple needs the same things that couples married for 10+ years (with 2 salaries, I might add) have. If they get the full package now, what will they aspire to later?