
This JPG contains a TXT file.
The tool is JPHSWin
The password is "password"
Save the fullsize image, open with JPHSWin, SEEK (and supply the not-so-secret password "password") then save the found file as f.txt.
The threat model is: someone sees an encrypted file, gets suspicious, forces you to reveal a password. In professional circles this is called the "rubber hose attack" but your parents would more likely simply deprive you of TV, car, etc.
The solution: hide one file inside another obvious boring file. Encrypt the hidden file before hiding it, too.
You could publish your picture and only those looking for hidden messages, and who have the secret key, will find them. Flickr, ebay, even 4chan :-)