IF I was trying to keep expenses down I'd
Service the wheel & BB bearings. About $1-2 per "axle". 40 1/4" (rear wheel, 18 & Bottom Bracket, 22)+ 20 3/16 (front wheel) bearings.
New brake pads. The old ones are probably hard and steel wheels aren't that good for braking anyway.
I'd spend the extra $ for Kool Stop pads. You NEVER hear people complain that their brakes are TOO GOOD on steel wheels.