Step 1: Click the "File" tab -> "Info" -> "Protect Document" -> "Encrypt with Password"

Step 2: Type in a password and click "OK".

Step 3: Reenter the password and click "OK".

Step 4: After choosing a password you should see that your document is encrypted.

If you are e-mailing, it is recommended to use an alternative form of communication (e.g. phone call) to share the password used to encrypt the file. For example, do not send the password in the same email as the encrypted file.