Like most social networks, Mastodon is not end-to-end encrypted. If you're sending sensitive info it's better to use a separate end-to-end encrypted messaging app.
Mastodon itself warns you about this if you are sending a DM through the web interface (see the screenshot).
More info about the risks and how to mitigate them in the guide at:
➡️ https://fedi.tips/is-mastodon-end-to-end-encrypted
TL:DR - Main risk is your server admin reading your DMs, but they would need techy skills to do this.
@FediTips
If you need an E2EE messaging but with a UI that even your toddler can work with, you can try #DeltaChat https://delta.chat
Other than that, you can also try #Matrix, and #XMPP. They are all #decentralized and #opensource
Delta Chat: Delta Chat, decentralized secure messenger