The text tool creates a space for text to go. Select the text tool and create a box, you will see generic text appear. You can then click the text and type whatever you like.

The hidden tools are the type on path tool and the vertical type tool.

Select the type on path tool, then click one of your lines or shapes. You can now type whatever you want around your shape.

If you want the type to start or end at a different point on the path select the selection tool (v) and click on the text, you will see three brackets appear, one at the beginning, one in the middle and one at the end.

The bracket at the beginning will allow you to set the start point, the bracket at the end allows you to choose the end point.

The middle bracket allows you to choose which side of the path you want the text to be on.

There are many ways to manipulate the font and text styles but the most basic is just to right click your text, you will see menus pop up that give you a few options to start with. (image 2)