I'm looking for a website host that will allow me to use ftp (allow me to make my own html documents and post them to the website). I also need something that will allow me to edit and post the files after they have been published so I can fix any mistakes. Also, I will need something that will hold at least 1gb so I will be able to use it until I can find a way to pay more, which reminds me, it will have to be upgradable (after I make a website I can start paying more for more space and whatnot). The reason for the cheap service is that my Friends and I are 13 and 14 so we don't have so much of a "steady" income. We just need it to be cheap untill we can find a way to make money (which, for my oldest friend in the group, will be about one year).
Thank you.

Let's drop the word "cheapest" and replace it with free,
http://20x.cc/ allows everything you described and more addon domains, ftp. ect

you can find about this on google they will give you good result