I like using wood spoons & silicone spatulas.

Years ago we began purchasing Henkels Four Star knives, individually, not in a set, so we could get exactly what we wanted. We had them in a wood block in our last kitchen, which we also purchased separately. We're not using the block in our new kitchen, because we now have many drawers and didn't want a block out on our island. We screwed a long magnetic strip, the kind usually hung on a wall, into a drawer next to our prep sink, and all our knives now live there. One advantage to the strip is that we can see & find a knife instantly without having to remember or guess where it was in the block. Another is that the strip is kinder on the knife edge & cleaner than using a block.

Yes, wood spoons are what you should use with good cookware.

The silicone ustensils are great and also cheap, they withstand very high temps, I also like the colorful WS spatulas, nothing burns them.

Life is too short to use knives from the dollar store; there are a lot of mid priced options and sales on good quality knives in department stores.

I lay my knives in my top drawer, no block.

Don't buy a set of knives. It isn't a good value, as you'll just end up with a bunch of knives that you'll likely never use. Purchase the knives that you really need as open stock. A good start would probably be a chef's knife (8 or 10 inch, depending on what feels better to you), a bread knife, and a paring knife. Don't buy anything without trying it out. A handle and weight that work for someone else may not feel right to you.

I think that quality knives are absolutely worth the money. I'm a sucker for Japanese knives, but there are plenty of good, more affordable options. You definitely don't have to spend a fortune. Check out the Victorinox Fibrox series; quality knives, very moderately priced. Once you get the knives that you need, purchase a storage solution separately, and don't forget to invest in the appropriate honing/sharpening implements, too.