I would definitely stock up on some red heart at that price! I use a lot of it because I'm poor. I personally wouldn't knit anything really "special" like a sweater or a jacket for an older person, but it's great for baby knitting if you get the softer kind, and it's great for hats.
I will say this, though. I have knit some hats with it while learning, and it does this thing.....I'm sure it has a name....like if you put the hat on and stretch it to do so, the hat stays stretched and looks kinda icky until it's washed and takes its original shape back.
But I have used it to make silly hats, or hats that won't be used very often, mostly just for play for my nieces and kids, etc. I love red heart for non-serious stuff.
I'll save up and buy better yarn for sweaters and jackets, though.
In other words, STOCK UP!