You have of course to assume $p$ odd. Observe that the multiplicative group $(\mathbb{Z}/p\mathbb{Z})^*$ has $p-1$ elements.
Consider the group homomomorphism $\rho\colon (\mathbb{Z}/p\mathbb{Z})^*\to (\mathbb{Z}/p\mathbb{Z})^*$ given by $x\mapsto x^2$. The image is the subgroup $S\subset (\mathbb{Z}/p\mathbb{Z})^*$ of squares. Hence, $S$ is isomorphic to $(\mathbb{Z}/p\mathbb{Z})^*/\mathrm{Ker}(\rho)$. It remains to show that $\mathrm{Ker}(\rho)$ is of order $2$.
This can be for example seen by the fact that $(\mathbb{Z}/p\mathbb{Z})^*$ is cyclic.