In my opinion, you would want to make it in illustrator. I was taught to never create text in photoshop. If you send out that ps file to print, you can possibly have blurring in the text. You can make the shape you need easily in illustrator as well as the text and you wont have to worry about running into that issue.
If you dont have illustrator you can download inkscape from
http://inkscape.org/ which is free and pretty similar.
You can download gimp from
http://gimp.org for a free alternatve to photoshop, best of luck.