you can find lots of very nice birdcages online and even used through craigslist for great prices, i got jacks first cage, origionally a $450 cal cage for $50 plus gas to get up to meet the guy about an hour away!, hed only used it for a few months before his bird passed away.
jacks new cage (jack is a sever macaw) is actually a cage designed for blue and gold/scarlet macaws so its palacial for him...but i got it from a friend who was downsizing her bird stuff, the cage origionally cost her almost $800, she gave it to me for $50 because it had some small rust spots and needed a REALY good cleaning and is missing the seed guards (which is fine because it wouldnt have fit in my room if it did have them lol)
just be sure if buying a used cage you scrub and disinfect it...
sounds like your little guy is comming along nicely, its a slow process to earn a parrots trust, even with many handfed babies...
but keep up the talking/singing and treats and hell be your best buddy in no time
one thing i do want to say...
everyones commented on birds neer faces and biting...
firstly, not all birds will simply attack your face, jacks favorite place to be is nuzzled under my chin giving me kisses while i fuss him...
but they will do alot of damage if they decide to bite the face...
yet noone has adressed the WHY.
birds are not "domesticated" like dogs and cats...and birds cant "communicate" like were used to in other pets.
in the wild a parrot would shoo its partner away from danger by nipping/biting, their way os saying "get back, danger" and when frustrated "your in my space" they dont just bite randomly...
most bites are for 2 reasons...1 FEAR, like horses birds tend not to like sudden changes/new things...it took jack 2 days after i got my hair cut short to realy get used ot it...you put a parrot in an uncomfortable situation and the bird will want to get itself and its flock (you) away from that situation...the best way in the birds mind to do that is to bite
and the "your in my space" reason is of course obvious.
i think when you have abetter idea as to WHY a bird usually bites (and that its not nesicarily a case of 'i hate you") its easier to handle the situation.