I just fly fish so I'm not familiar with the spin fishing regs. I'll say this a permit for 7 days is about $25.00 and Montana 7 days is about $30.00.
The Madison is a fly fishing stream only, as are other streams. There are several areas that are set aside for youth. The fishing is awesome in the LaMar and Slough Creek.
If you want to hire a guide I could recommend Bob Jacklin's or Blue Ribbon Flies both are top notch shops in West Yellowstone. Bob Jacklin sells spin equipment and would be a shop where I would send a spin fisherman. He also works well with kids.
If you decide to try fly fishing both shops have rental equipment.
The price of a guide will depend on if it's a float trip or walk and wade, half day or full. They will tailor your day to your experience.