The only way you can text is by using a free texting app, and some apps cost and others are free.
TextNow is one of the best free texting apps as it allows you to text for free and inclues free picture messaging!
Textplus+ is also free and great too. When you get a text your iPod touch will turn on and make a noise so you know that someone sent you a text. You can also set a ring tone too.
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No, you do not have to pay monthly bills to text on an iPod Touch, mostly because you really can't text on the iPod Touch.
Most texting apps do not charge monthly, but see the description of the app before purchasing it.
There are no monthly costs involved with the iPod Touch. There are some Apps that cost money, but most, if not all, only charge a one time fee.
The only bill you have to pay is the one that allows you to buy the iPod Touch at the store. Other than that there are no other bills that you must pay.