Honestly, you cant go wrong with the nifty fifty. Ive been really happy with how it performs on the T7 body for the price. Its leagues better than that kit lens for sharpness and getting that blurry background you want for portraits. I have used a couple of these cheap primes and here is how they stack up:

• Canon EF 50mm f/1.8 STM: This is the one to get. Its quiet, fast, and very sharp even wide open at f/1.8. No complaints from me at all.
• Yongnuo 50mm f/1.8 for Canon EF: If you really need to save every penny, this works well enough. Its basically a clone but feels cheaper and the focus motor is kinda loud tbh. I usually tell people to just grab the Canon version because the STM motor makes a massive difference for autofocus. Its a huge step up from the 18-55mm and fits your budget perfectly.