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Neighbor wants to use my wi-Fi

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My neighbors son asked for my permission to allow his mother to get into my wi-fi setup so she can use an IPad just to send emails to family and distant families in another country to avoid high costs. I am not too keen myself On wifi or networking. First, I doubt if this is legal and what are the consequences if the cable company finds out. Second, by allowing her to do this, what privacy do I have, though I am sure she is completely ignorant in this matter, but would she be able to see whatever I am doing either on line or not? I have my setup secured WPA-2. What will do to my signal, lessen it? When I check my network status, I do see a list of nearby wi-fi members, even one I know is my other neighbor, who has her own setup. Could they just clik on my username and poke into what i am doing, or does a signal go to that party informing them that someone is on your line? Please, any respondents, keep it simple like i said not too keen in this matter. Thnx.

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