You can consider text as a kind of shape : it has contours and some thickness in which you want another image to appear.
Imagine you have a shape : it can be any selection, a shape from the shapes tools or text (with some thickness in the font).
That shape can work as a kind of stencil inserted under another image. It hides anything except what is in your shape.
One way to do this in Elements, once you have your shape layer just under the image layer, is to select the image layer (make it active) and press Ctrl G to 'clip' the image layer to the shape layer. In the layer palette, the image layer is moved toward right : that means the image layer has no effect on any layer under the layer shape. And since your shape layer has transparent pixels and opaque ones, the effect is limited to the opaque ones, which is exactly what you want.
The advantage of this solution is that you can move or edit your shape and image layers independently. It works if your shape layer is a regular shape layer or text or if it is a simple ordinary pixel layer where you have defined a shape surrounded with blank pixels.