I've had some requests for knitting instructions. I taught myself how to knit from a book. If you don't know anyone who knits, you can check out a knitting book from the library or you can learn from videos. Sometimes it's easier to learn from actually watching someone knit in person or on a video than learning from a book.
I found a couple of knitting videos for you that might be helpful.
This video is all about the different types of yarns available. Hobby Lobby often has yarn for half price and Wal-Mart sometimes has yarn on clearance. I've even found some nice yarn at Dollar Tree. Knitting does not have to be an expensive hobby and you can make some really nice hand made gifts.
This video shows how to cast on. It's the first step in knitting.
This one shows how to make the basic knit stitch.
Hopefully this will get you started. Remember that it takes practice. I made LOTS of mistakes as I was first starting out and still do. Just keep with it. After a while your hands will be making that knit stitch without you even having to think about it.