When you go to the grocery store, you are casually asked whether you want to bag your items in paper or plastic. Then you make the decision whether to pay with paper (cash) or plastic (debit or credit cards). These routine decisions probably take you less than a second to decide, but what about the vacation version of the paper or plastic option?

Typically, a credit card is your best option when traveling. If you lose the card, or it is stolen- you can make a quick phone call to your credit card company and stop your liability for fraudulant charges. Always carry the customer service phone number of your credit cards with you, in case you do lose or have the card stolen so you can quickly call and remedy the situation. It's also a good idea to travel with two credit cards, from different banks, in case of emergencies.

When traveling internationally, a credit card is an excellent choice as you will not need to deal with exchanging your cash for the local currency. A word of caution, however, you will want to verify whether your credit card is accepted in the country to which you are traveling, as some cards are not accepted in all countries. You will also want to verify ahead of time the cost of using your card in another country, as some card lenders impose fees for purchases made in other countries. On the other hand, ATM withdrawals are often cheaper despite the cash advance fee-so you may decide to withdraw cash from a local ATM while traveling.

Even when not traveling outside the country, credit cards can make everything so much more convenient. Renting a car, getting a hotel room and dining in a restaurant are all perfect opportunities to swipe your card rather than counting out cash. Keeping your receipts for each transaction while on vacation means you have a record of each activity when you return home. You can figure out what your vacation cost you, and better budget for future vacations with that knowledge. When you spend cash throughout the trip, it's easy to lose track of how much you're spending and on what, and who knows if when you went to pull out the $60 to pay your server for lunch another $20 fell out of your pocket?

If you are someone who tends to lose control of their spending, however, using plastic might not be the best idea for you! If you have to keep to a strict budget while on vacation, and the use of credit cards might cause you to overspend, then obviously go the cash route. A good way to keep your cash as safe as possible while traveling is to wear a money belt underneath your clothing, so that no one knows that it is there. Never wear the "fanny packs" on the outside of your clothing, as they make easy targets for pocket pickers and you are practically inviting them to steal your cash. It is recommended not to carry all of your vacation cash on you at once, just in case you do have a run in with a thief.

If you can determine how much money you can spend on your vacation, and know that you are able to stick to that amount while using credit cards, it is typically a good practice to use plastic for your vacation expenses. A good rule of thumb is to have the money saved for your vacation before you go, even if you plan to use plastic, and then that is your travel budget.

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