Suppliers of WiFi gear, like routers, purposely let unsuspecting users set up insecure WiFi networks. They want to make it as easy as possible for anyone, including "dummies", to get WiFi going. They know that if they required secure settings, many people would give up and return the gear. They would also get way too many support calls. :^) [more] [another pitfall]
The result is, you don't have to do much more than plug a modern WiFi router in to start using it, and most people don't. Fortunately, you can have robust security if you set your WiFi network up right. We're not dummies, so we're going to learn how to be secure. :-)
Use your browser's "web access" administrative interface to change your router's settings. The browser address that you use to reach it's web-style utility is usually 192.168.1.1 or 192.168.1.0, but it can be something like 10.0.0.1.
One last critical note: Windows grants "trusted" status to all the computers that are connected to the same router. If any one of them is infected with malware, the rest of them are likely to be infected too. That's because the defenses that Windows maintains against intrusion from the Internet are dropped for computers on the local area network (LAN). It's important to provide independent protection for each computer connected to the LAN by installing an effective security system on each one of them.
Securing your router is not just important to protect your network against attack. You could also be held accountable for the illegal activity of someone who piggybacks on your Internet connection, since it's your IP address that will be identified.
The username and password that you use to log in to your router to make configuration changes need to be strong. It's easy for a hacker to quickly break a weak one and redirect all your computers to his own evil website. Worse yet, if you don't change them from the default ones they can just waltz right in. Update: Now cyber-criminals are using malware to change router settings
If a hacker gets in to your router's administrative function, he can do anything from directing you to malicious sites to intercepting everything that goes to and from the Internet.
A strong username or password has 14 or more random characters. You can also use a more easily remembered passphrase. A strong passphrase has 5 or more randomly chosen words.
Don't confuse your administrative password with the shared key that is used for encryption. The shared key needs to be much stronger than the password.
You will find more on changing your router's password here.