Use the Text On Shape Tool in Adobe Photoshop Elements
Adobe Photoshop Elements' Text On Shape tool enables you to create type that flows along the perimeter of any shape. To do so, follow these steps:
Open the Photo Editor and choose Expert mode.
Open an image or create a new, blank Elements file.
Select the Text On Shape tool from the Tools panel or press T to cycle through the various type tools.
You can also select the Text on Shape tool from the Tool Options. It looks like a capital letter T with a wavy box around it.
Select your desired shape from the shape options in the Tool Options.
Drag your tool over the image to create the shape.
To constrain your proportions, hold down the Shift key while dragging.
To draw from the center outward, hold down the Alt (Option on the Mac) key while dragging.
(Optional) Transform your shape by choosing Image→Transform Shape and choosing your desired transformation.
You can specify additional options, which are common to all the type tools.
Position your mouse pointer over the path and, when the cursor icon changes to an I-beam (capital letter I with a crooked line crossing over), click the path and type your text.
The text wraps along the shape’s path, as shown in the figure.
If you type more text than can fit on the path, an overflow icon appears. Adjust the path until all your text appears.
When you’re done entering your text, click the Commit check-mark icon. If you want to start over, click the red Cancel icon.
Elements creates a new type layer. You can edit any attributes, such as font and size, just as you can with point or paragraph text.
You can also refine your shape path by using the Refine Path tool (labeled Modify), which appears in the Tool Options when the Text On Custom Path tool is selected. Just be sure that you have your type layer selected before working with this option.