The combination that I recommend is SnagIt from http://www.techsmith.com and Windows Movie Maker (PC) and iMovie (Mac). The later two are free from Microsoft and Apple, respectively. SnagIt costs $50 while the others are free.
Below is a video showing you how to make a seamless transition from SnagIt to WMM.
https://www.youtube.com/watch?v=2S0KpzLUOF8
If you plan to anymore fancy video editing, then there is a free program called Lightworks. It is on par with the commercial program Premiere by Adobe. There is a free and paid version of Lightworks, but Premiere is not free, even with the lite version called Premiere Elements.
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