R.F.
I would suggest a twin bed instead of a toddler bed. He will probably grow out of a toddler bed soon, so you would have to transition him again (hence more money for another bed!). You can entice him with his 'big boy' bed by letting him pick his own sheets (like Disney's Cars). My daughter went straight from a crib at around 2 to a full sized bed with one of those side guards so she wouldn't fall out. There wasn't a problem at all! She's only fallen out once (a couple months ago and she is 4 now), but it was off the foot of the bed! Not much we could do about that one....