Wow. you've gotten so many replies here.. I did not take the time to read them all, but here's my 2 cents..
Sure.. plan a project.. that works.. but some of my favorite tools..
If you do any case work.. boxes.. bookshelves, a table saw will be real handy. A contractors type -- where the motor hangs out the back will be fine. A used one can be had in the 300-500 range. Get the Biesemeyer style fence. Get that style fence. All brands come with a version of it.
A fun tool is a scrollsaw. Dewalt makes a nice 20" saw that can be had for around 300 used. It's just a fun saw to play with. You'll be mostly making small items, but you can get as crafty as you want. I just got one and it's a blast. And the kids/grandkids can use it. Very safe tool.
Buy a nice jigsaw for curved cuts.
Buy a dust collector with 1 micron filtration unless you are going to be blowing the dust outside. See Bill Pentz website. This is important for all but the scrollsaw. Take this seriously. Breathing all that fine dust is not good.
Buy a router.. 2 HP or so. Use it handheld, or mount in on the underside of a table. You can make a table.
Consider a miter box - non slider, 10 or 12 inch. The tablesaw can do all that , but the miter saw comes in handy and great for rough sizing stock.
Consider a bandsaw - especially if you want to cut down thicker stock into thinner stock. It's also handy for curved cuts (though a handheld jigsaw will work also).
Consider a portable planer - useful for making flat stock thinner. Need to have flat stock, so either buy flat stock, or buy a jointer to make flat stock.
Consider a jointer - to make stock flat. You don't need this if you are buying flat and square stock. But if you get rough stock or do some resawing on the bandsaw, you may want to consider it.
Forget the radial arm saw. Just use your tablesaw and make a crosscut box.
Get some good measuring tools -- tape measure, 6" steel rule, engineers square, combo square.
Some folks are big into hand planing. I haven't been sucked in yet.. but it's worthwhile to consider.
I'd shop the classifieds, craigslist, etc to get some good used equipment. You can probably save 50% or better. But you might need to read up a bit on each tool before shopping. There are a lot of great buys on used tools if you live near a large metro area.
Enjoy the hobby.. and very sorry to hear about your hubby. Blessings to you.