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Hi. Was looking around for a first car for once I am able to get my restricted license. Was interested in small hatchbacks, small engines therefore economical. Reliability, minimal cost to maintain and economy are big on my list and for less than $3000...is a 1992-1998 Toyota Starlet a good choice. My driving instructor said a 1992-1996 corolla 1.3 nz new would be a good choice. Is there anything you would recommend??

You're definitely on the right track. Either the Starlet or Corolla would be good choices if you could find a good well-kept example in your price range. The Corolla is arguably a little more popular than the Srarlet, which is smaller.
However, while the Toyota models are popular for good reason, most mainstream Japanese cars from this era were fairly good from a reliability and economy perspective, so the key is to try to find a car in the best condition possible, preferably with lowish kms and a good service history, so don't necessarily limit your search. Look for the best car you can find. Mazda Familia, Honda Civic, Nissan Pulsar etc are all quite good, depending on condition.

Thanks heaps. Ill certainly look into that as there do seem to be alot of Nissan Pulsars for sale..so plenty to choose from. The mazda familia also looks like a good choice...my dad has had an 89 mx5 for the past 17 years..no problems whatsoever and not even a fail on the WOF. Im definatley reasured to take a Japenese model car