What is her age?

Without knowing her style preference or budget it's hard to say. For kids/teens decorating is more fun since you're able to be more edgy. I would paint below the wall trim a hot pink or teal depending on her preference. Above the wall trim I would do black and white vertical stripes. That would be a huge transformation for this room! She could either keep the bed white or paint the metal black. Then find bedding that's either black, white, hot pink or real. Even a combination of all of those would be very cool.

First thing to go IMO would be the desk it is huge in that space I would like to know a lot more about her too. Get her to go on this site and make an idea book of rooms she likes and then slowly work towrd that idea.I would also turn the bed so it runs along the wall to act like a daybed with big pillows so there is a spce to sit for friends.

Your pic shows only one-and-a-half walls -- could you post a couple more so that we get a full idea of each wall? As well as commenting on her age and tastes and interests ... and favourite colours, of course.

The dark wood floor and dark furniture are very rich. The pastel walls and metal bed frame aren't working with the floor and furniture.

Use the bed without the foot and head metal frame. Go to restore and buy a door and stain it dark like the other furniture.
Attach it to the wall at the head of the bed and use it as a headboard.

Have your daughter select new bedding for her room. The wall color can be chosen from the bedding. I would remove the chair rail diving top from bottom.

If it is in the budget have to find posters that she LOVES and frame them to hang on her walls.

Hope that helps! Most of all have fun with the updates!!!

First, you don't say what she hates about it, so it's hard to give advice. Second, if she's only allowed to spend her own money on it, then it's only fair that she get to make all the choices.

I would not surprise her. Instead, I'd sit down with her and go through photos on Houzz, save the ones she loves in an ideabook for her, then make a plan that's within her budget. It will be a fabulous learning activity for her and a great mother/daughter bonding time as well.

Some possible inspiration to start you out:

You're going to surprise her by spending her own money, without her input? That would certainly surprise me...and not in a good way. Not trying to be unkind...just sounds peculiar.

How old is your daughter?

Where is the entrance door?

I agree with Grover and Kivi.
There are some good ideas mentioned here, but if you're doing this with her money, she needs to be part of it throughout.
As to the ideas, Patricia suggested the bed be rotated, I think that would look great and be space efficient. along with csch's idea, I think painting the bed frame black for uniformity of the furniture is a good idea too.

Very interesting dilemma! Besides the design issues, there are also the logistical issues of how to surprise somebody with their own money.

This is a good time for her to learn, choose the bedding first.

I like the daughter's rights campaign going on here. Here's an idea -- surprise her with a shopping trip for the bedding, and offer to pay for that. Now that is a birthday present. Then have fun planning the rest with her, as others suggest above.

Thank you my daughter is 13 and likes golds, blacks, nudes and blues. Thanks for some of the opinions I will look into this. Do you think if I redo that desk that maybe it would make the room look nicer? And new bedding it a god idea.

I think Patricia's idea to turn the bed sideways and add pillows so it's like a daybed is good

If the desk could be smaller it would probably help, also the desk chair could use a brighter throw

for decor ideas I saw these rooms with gold non permanent decals that I thought were cute

http://www.wallpops.com/search.aspx?keyword=Gold