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Lots of good comments! I do think it is a bit of stretch to include a jointer and surface planner on the ‘basics’ list – we’ve got a slippery slope here! And a lot of different approaches – money, space, time, resources, etc. But lets plunge ahead. If you buy your wood already (or mostly) prep’ed, then the jointer & surface planner can be postponed. You definitely need a way to accurately measure linear distances (e.g. length, width) so a good ruler and tape measure. You need to be able to measure squareness – so you need a good combination square. You need to be able to mark the wood – so a good marking knife, an awl, some chalk, a fine pencil, etc. You should have some decent chisels (and good ones don’t need to cost a lot!). You will need to sharpen them (again not expensive – piece of plate glass and some sandpaper). You need a way to accurately cut your wood – a couple of good handsaws and a file or two for sharpening. You really should have a decent work surface/work bench/etc – a good first project by the way. Last of the basics – a good drill (3/8″ vs battery type). Lastly (I could go on but room is lacking), take a look at Paul Seller’s video’s for simple but highly competent work.
Wooden mallets are mostly used for hitting your chisels when cutting joints (like dovetail joints or chopping mortises). You should never hit a chisel with a metal hammer. Build or buy a mallet that is made of fairly hard wood (e.g. maple, oak, beech wood, etc.), that will feel well balanced in your hand, and that gives you enough weight to chop with your chisels.