What should I do with my broken, crappy, first guitar?

Save it because later on in a few years you will reminisce about all those times you played with the guitar. Also, if you want it to work again, I suggest buying the parts yourself and trying to fix it yourself, if it works well again great, if not, it will be a fun experiment/project. That's what I did with my first guitar, and I'm glad I did, it was with that guitar that I learned how to fix broken parts or replace hardware, and now I do all my own guitar tech stuff. Saves a LOT of money and it's something that'll put a smile on your face in a few years.