I need to know If I can password protect a folder in Mountain Lion?

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I have got some important files and my Mac is accessed by few more people. The idea is simple to put a password on a folder that will be having all my personal data. Now how should I do it so that only me can access the content of that folder.
 
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They should not be in your User Account, give them their own accounts or enable the Guess account.

If you wish to create a secure file/folder use an encrypted disk image, you can make them in Disk Utility.
 
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Spotlight - Disk Utility is in your Utilises Folder.
File > New > Blank Disk Image
Give it a Save As: filename (this is the name of the file)
Give the Disk Image a Name (this is the name of the drive once its mounted)
Choose a Size, don't make it too big. You can always make another bigger one if you run out of space.
Format, stick with Mac OS Extended (Journaled) that way none of the Apps will have a problem writing to it.
Encryption: choose one
Partitions: leave Single
Image Format: read/write disk Image

Click Create

This will make a file in the location you selected.
The File will be names with the filename.
It will also Mount it ready for use.
You don't need Disk Utility so Quit it.

Once you have finished with the Disk Image Drive, Eject it.
Next time you double click on the File it will ask for the Password, then Mount the Disk Drive again.

They are very easy to use, just don't forget to unMount it when you have finished with it.

Also these thing are very secure, so don't forget the password, the files locked in it can't be retrieved without it!!!
 
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Although it's good to know how to create an encrypted disk image, I'd suggest following Kaveman's fist piece of advice. Allowing others access to your Home Folder may cause problems.
 

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