Welcome to the wonderful world of quilting. I have been at it for more than 40 years. The very first quilt I made had about 10 different kinds of fabric in it. I made it from the scraps left over from all of the garments I had sewn for myself. The last time I saw it my husband was lying on it to change the oil in his truck. It survived my stepson's bedroom and having various liquids spilled on it over the years.
Work with what you like and what you can afford. Sometimes you just fall in love with a fabric that is totally not quilt material. Use it if it makes you happy. Especially if it is going to hang on the wall etc. There is a whole school of art quilters out there who use anything and everything.
If you don't find thread that says it is for handquilting use whatever but try to work with shorter pieces and run it over a piece of bee's wax. Every stitch you take the thread gets dragged through the fabric it's whole length. Handquilting thread holds up the best for that reason.