I would also got the bathroom route. Get a liter box and place the kitten in it, take her paw and dig in the liter. I also beleive cats have an natural instinct about "nature calls".

I also have to agree with Pay It Forward, if she can not afford something as basic as liter, then why does he/she have a cat.

My brother in law and his wife are like your friend. The only problem is, they have the money to spend on themselves, but hte cats are the ones that suffer.....their problem is that they just don't care.