Shaped Text
Shaped text is very decorative and can be used for everything.
Step 1: Use the
Freeform Pen Tool, which looks like this:

to make a line with curves.
Step 2: Then use the
text tool, which looks like this

. Hold the tool right over the line you just made, so that it changes symbol, then you can start writng on the line.
Step 3: Here's my finished shaped text: