Ubuntu – Ubuntu 14.04 – New User Account

I have a question regarding the creation of a new user on Ubuntu 14.04. When I go to "User Accounts" and click "+" to make a new account, it asks for "Account Type", "Full Name", and "Username". After selecting the account type and entering a "Full Name", it suggests a username which I accepted.

It does not ask for a password and when I try login to the new user account, no passwords are accepted. How do I set a password for this user account and why doesn't it ask this while creating the account? Thanks.