Budget or not I always use solo cups to transplant my pepper and tomato seedlings into. My husband says the plants come out of the cups easier than they do out of pots when he transplants into the garden. They are sturdy enough to be sterilized and used again the next year. One thing though is that they are tippier than pots so if you have a tray that's divided for pots it would be better than an open tray.

I use the pointed end of a wood burning tool that I picked up at Walmart when I got my first cups and put 4 holes in the bottom. Using it does a lot of cups very fast. I also use it to put holes on the bottom of plastic mushroom boxes that I use for starting all my seeds. It is easier to keep shallow container uniformly moist when starting seeds. If you use a wood burning tool though do it in a well ventilated area. The smell of burning plastic is not great.

The wick would be good for keeping plants moist if you are away but I think it would keep the plants too wet if you used it all the time. Peppers like most plants like to dry out between watering. There are small air pockets in the soil and roots need that air to grow. When you water those pockets fill up with water. That's why it is best not to keep your plants wet all the time. Think of plants outside, It rains or you water and then there is a period of dry between. That is also why it is good to bottom water. Bottom watering best imitates natural growing conditions.

I used my husband's electric drill. Worked great. Did several at a time but just did one hole in the bottom. I put a clear plastic dome over the top until they are all germinated. Have to watch for mold to start in which case I take the dome off for a couple days. If you don't have the domes, you probably could use plastic wrap or a plastic bag. I did that until I got the domes. I water from the top with a sprayer when needed. Good Luck, Barbara