Take a few minutes to watch this short tutorial to begin understanding the basics. Also understand you likely need more light than you have for those photos you've taken.
Reading the manual for your "new" camera is the first step to understanding how to use it effectively.
You'll need to become familiar with all of its controls so you can use its settings properly.
"What settings do I need to have the camera on for movement?"
As with almost anything camera/lenses have their limitations. There is a point when even the best gear money can buy will not take a good picture. A low end camera and a low end lens is going to be more restricted as you may realize. However, there are trade offs. You might hike up the ISO and get better stop action but the photos may suffer form more grainy appearance.
Light here is the key. You just don't have enough.
I put the selector on action but it didn’t help.
None of the automatic selections will do a good job when conditions are poor. They might work well out doors on nice days.
When conditions aren't the best you need to set the camera to do what is necessary for proper exposure. And, realize there are some conditions where it won't work.
If you don't know how to do the settings I will suggest check your T7 manual. Put the mode dial in Av. Set the lens to its widest aperture, f3.5. Set the ISO to 800 or 1600. Set the WB (white balance) to indoor. Turn on all the lights you have in the room.
You might even try ISO 3200 to see if it works but leave the other settings alone.
"My cell phone takes better photos."
And, it may be that your iphone is what you need to use. Nothing wrong with that. However, your iphone processes the image a lot, a whole lot. You can do the same with your T7 but it isn't done in the camera like it is automatically done for you in the iphone. Plus your iphone is designed and optimized for the iphone screen. The iphone uses a tiny sensor about the size of your pinky finger nail while the T7 has a much larger one. Try enlarging the picture or making a nice 8x10 form an iphone shot. Your T7 will get higher resolution photos, and has the ability to capture distance shots, motion shots, and alter aperture and shutter speed better than any iphone. You don't have the ability to readily change the lens in your iphone like you can with your T7. That is key, too. The correct lens for the shot. The iphone is always getting better and as long as you live in that 2x3 inch world and are satified there, no harm no foul.
I just bought a cheaper (yes I know you get what you pay for) Canon Rebel EOS T7.
Our kids play soccer and they wrestle. It came with one lens 18-55mm.
I’ve tried to take some photos just sitting in the living room and our dog walking is blurry or someone moved a little bit and it’s blurry. My cell phone takes better photos.
What settings do I need to have the camera on for movement? I put the selector on action but it didn’t help.
In addition to the other good suggestions you've received, if you've got some moving subjects, you might also want to put your camera in Servo mode, if you haven't already..
The action setting hasn’t worked one time yet for me for soccer or wrestling shots. Still come out blurry. I’m wondering what manual settings I might need to try.
You might try turning your mode dial to TV (this is the shutter priority mode), and turning the main rotary dial so that you set your shutter speed to to 200 or 400.
Try to keep your camera as still as possible.