The household iron will work fine, it's just a little unwieldy.... For that reason, I recommend getting a covering iron. It's so much easier than hefting a clothes iron. You run a greater chance of grooving and denting the wood with a full size clothes iron.
As far as heat guns go, a blow dryer will work, particularly with the Econokote, but it won't shrink it as much as you can with a heat gun. On the flip side, you are a lot less likely to burn a hole in the covering...
As far as covering goes, Monokote is good, but for a first covering job, I actually recommend Econokote. The Econokote is a lower temp film, meaning that it adheres and shrinks at a lower temperature. I have also found it to be a bit more forgiving when covering compound curves. What you don't have with Econokote is as good of a color selection. Another plus for Econokote, it's a few bucks less per the same size roll. The Senior Telemaster will require a LOT of covering, it's a big plane! The beauty of it, it's got a lot of flat surfaces, making it a great plane to learn on. There are some pretty good YouTube tutorials for covering, so definitely check them out. The Towerkote from tower hobbies is okay as well, and even a few shekels less than the Econokote. With the Towerkote, I find I am reshrinking it a lot, it seems to sag in the sun and even when it gets fuel on it. That's one other caveat with Econokote; it tends to sag if you are going to run a gasoline engine, but does fine with glow fuel.
One other recommendation, depending on the age of the plans, it might show a one piece wing. If it does, I would definitely look into a two piece wing mod. I have a one piece wing Sr. Telemaster, and an 8' foot one piece wing can be a bear to transport!!
EDIT: Which Telemaster are you building? Is it the .40 size or the Sr. Telemaster?
Towerhobbies.com for covering film and all the other bits you will need. Feel free to ask lots of questions, this is a great forum, with some knowledgeable people.