Procurement Budgets vs. Teen Budgets

Budget Tips for Everyone

Believe it or not, there’s a lot procurement leaders can learn from teenagers – and no, we’re not talking about the latest fashion trends or catch phrases. We’re talking about how to best manage your procurement budget process!

Perhaps a better way to phrase it would be to say that procurement professionals and the average teenager share a lot of the same problems when it comes to managing money.

Here are tips that are relevant to teenagers and procurement leaders alike.

Show Me the Money!: First, your teen should spend 1-2 months keeping a money diary – writing down every purchase, even the smallest expense. With their expenses down on paper, they can see where their money is going, and what spending habits need to change. Record-keeping should be as specific as possible.

Our take: Here we see the importance of keeping track of all purchases, no matter how small. For teenagers, this could be on junk food or apps, but for the procurement professional, it’s often un-managed spend on a wide variety of miscellaneous items. It’s critical for purchasing professionals to know – at a moment’s notice – what their actual spending looks like.

After the Tracking: After keeping a money diary, help your teen make a list of potential cutbacks – areas where they can get by with spending less. Help them make adjustments each month as they discover what works, and what doesn’t.

Our take: Of course, without the ability to track spend in real-time, it’s difficult for purchasing managers to identify areas where cutbacks could be made. Procurement solutions need to flexible and based on accurate data.

Making the Wish List: After devising a budget, your teen should create a “Wish List” of things they’d like, or need, but can’t afford right now. A lot of teens can achieve their Wish List once they stick to a budget. Help them make it a goal to purchase at least one Wish List item.

Our take: One of the great features of Vroozi is that it enables users to search multiple catalogs from a single platform. While these purchases may be less exciting than a teenager’s wish list, these items are often necessary for day-to-day operations.

Control Impulse Buying: Encourage your teen to think through spending decisions, rather than impulsively buying items right away. Show your teen how comparing prices or waiting for an item to go on sale can save money.

Our take: It’s almost as if they are marketing e-procurement for us! Just replace the word “teen” with “boss” and it writes itself.

Vroozi’s mission is to help businesses make smarter purchasing decisions about the way in which they spend money.

 

As you can see, teens’ budgeting are not so different from your procurement budget after all. The key difference, when it comes to managing money, is that teens need good parents, while procurement professionals need Vroozi.

Learn more about procurement solutions with a live Vroozi demo.