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I had started my kids in the past on this and they had graduated to other golf equipments. http://www.uskidsgolf.com/uskg..
All you need is to get a 6 iron for him now, as you progress trade in or sell the old stuff and get the golf club that fits him as he grow taller and stronger.
Have fun and safety first as you take the youngsters on to the driving range, please, teach him where not to walk ( like directly across the back of other golfers ) and where not to go ( forward of the tee line, even to pick up another loose golf ball ).
Be safety conscious and have some fun with the little man.

A cut down adult club is too stiff and too heavy for the very young golfers; might hurt their back and hands.
The made for the Junior golf clubs are geared for the physical ability of the very young. I think they'll have more fun with the proper golf club.
If you don't want to be bothered with selling or trading the equipment later on, either donate to the First Tee program near you or trade with another club they have.

guess this raises another question. Do you buy your kid plastic clubs first or junior clubs? If you say junior clubs, is there any risk that the kid could develop bad swing habits by using them?

US kids golf clubs are the way to go. My son went through almost all the colors they offer.

I did not get those plastic golf clubs for my kids from the beginning, actually, the light weight of these plastic golf clubs made them just toys.
You'll be surprised at how naturally kids could just grip a golf club and hit the golf balls smack on. All you need to do is to show them the 10 finger grip ( for the very young )and explain the motion of hitting down and through the golf balls, they'll pick it up very fast. Showing them videos of professional golfers will do a great job.
One word of caution, since the real golf club basically could turn into a weapon ( yes, even those for the 3-5 year old mini clubs ), keep your eyes on them at all times; especially not to let them have the club indoors (very bad results with a youngster on the hard wood floor chopping away with a 6 iron ).

I found a set at Sports Authority and brought the kids with me. They have some dandy sets that come with a driver, one or two irons, putter and carry bag. They are quite cute. Most are about 59-79.00