I suggest using pre-made word balloons, since they look great and are an enormous time saver. Most word balloons are .EPS files, so they can be imported directly into Photoshop using the standard "Open" command.
When Photoshop attempts to open an .EPS file, a Rasterize Image dialogue box will open, giving you complete control on how the vector graphic is imported. Photoshop automatically inserts the object's default width and height. You can also choose a resolution and mode.
Word balloons can also be created directly in Photoshop. Using the Circular Marquee tool, you can form the basis of your balloon over your text.
Next, use the Lasso tool to add a tail.
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Adobe Photoshop can be a complex tool only because you can do so much with it, however for in this video series, we're going to keep it as simple as possible. In fact, in this video you'll see an overview of the few tools and Adobe Photoshop features we will use. When you see this video, you'll see how you can do so much with so few features, but you'll learn how to use them in depth in the future videos.