Yes you need tools.
A grinder, a drill press, a vice, and all the smaller hand tools that go along with that. Most custom knife makers do one of two things, they take a bar of steel and heat it red hot in a forge, then pound it, then heat it,t hen pound it, into shape and then use a grinder to make the final bevels, polish it, etc. A handle is mounted, shaped, etc. usually it is drilled and pinned on.
Others take a bar of steel and simply grind away everything that doesnt look like a knife, to put it simply. Handles are shapred the same, attached as before.
Its not super expensive to get into it - I have, since I started three years ago, invested about $600 in tools - relatively, thats not much.
I suggest you save your money and buy a new knife - specific types of metals need to be used for knife-blades, and they have to be heat-treated. The blade needs to be specifically shaped to cut certain things. The handle needs to be well secured to be safe as well. I admire your effort, but I just dont think that one will work out right.
Never fear, my first knife making attempts, before I knew what custom knife making was, were much like that and I was about your age. Few years down the road, and I am a professional knife maker.
I suggest you check out the Shop Talk forum, and look around online or in your local bookstore for some books on knife-making.