You can use this tutorial with Adobe® Photoshop® Elements versions 7 and 8.
Add editable text to any image in Adobe® Photoshop® Elements. Then, format the text by changing the font, color, point size, style, and more. After formatting the text, move or rotate it.
To complete this tutorial, install the following software:
You can add text, such as a title or speech bubble, directly to your existing photos.
Before you begin typing, it is a good idea to set the options for the text. You can do that in the Options bar, as shown in Figure 1.
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Figure 1: A. Font, B. Style, C. Size, D. Anti-aliased, E. Format, F. Alignment, G. Leading, H. Color, I. Warp, J. Orientation, K. Cancel/Commit
You can choose styles like italic, bold, and semi-bold, if your font has those options available.
Notice the anti-aliasing option to keep the edges of the text smooth. There are also options for bold, italic, underline, and strike through formatting. For multi-line text, you can align the paragraph to the left, right, or center. You can even adjust the leading, or space between each line.

Figure 2: Color swatches
The text you add has a black underline. Whenever you add text or edit text you have to commit the change, or tell Photoshop Elements you are finished.
The black line below the text disappears. Another way to commit the change is to select a different layer or change tools. If you look in the Layers palette, you see the new text layer, as shown in Figure 3. A text layer is a special type of layer because the text remains editable. You will learn how to edit text in another tutorial.

Figure 3: Text layer
After adding text, you will probably want to adjust its position on the photo.
The Move tool creates a bounding box around the text, as shown in Figure 4. You can use the anchor points on the bounding box to size the text.

Figure 4: Bounding box
The text remains editable as long as the type layer is in the file. So, if you are going to save the file, do so in a format that lets you keep layers, such as a PSD. If you save in JPEG format for example, the text is no longer editable.
If you enjoyed this tutorial, check out these other resources to help get you started using Photoshop Elements.
Jan Kabili is senior trainer and evangelist at lynda.com. She has authored numerous books on Adobe software, including How to Wow: Photoshop CS2 for the Web, Photoshop CS Complete Course, Photoshop Elements Complete Course, and Photoshop ImageReady Hands on Training for the Web (with Lynda Weinman). In addition to her lynda.com training videos which include Photoshop Elements 3 Essential Training, and Photoshop CS3 for the Web Essential Training, she has written many articles for leading software publications such as Macworld, Photoshop User, and Mac Design magazines. Jan has not only contributed to the Adobe Classroom, but she is a published photographer and digital artist, with a Master of Fine Arts degree from University of Colorado at Boulder, and a law degree from Stanford Law School.
In Photoshop Elements 7 for Windows Essential Training, Jan Kabili shares workflow techniques for organizing, editing, creating projects, and sharing. She also demonstrates how to enhance photos with this budget-friendly software. Jan explains the latest updates to the Organizer and Editor workspaces, and also covers new features like the Smart Brush tool and Photoshop.com integration. Elements is very well known for its project features, and Jan shows how to create books, collages, panoramas, and more. Example files accompany the course.