Money
Coinage, tradebars, promissory notes, monthly living expenses, and the economic philosophy of a coin-and-grain fantasy world.
Overview
Money is an important element of fantasy settings, though it can take many forms. The most common form is coinage, a classic old-world institution based on the idea that certain metals have intrinsic worth due to their rarity. Coins are not worth anything in and of themselves: they are a social contract. The concept of “Loot” and “Riches” is so deeply ingrained in the fantasy genre that you can’t divorce the two.
The value of a coin is determined in one of two ways. The first is the weight of the metal: larger, heavier coins made with more precious metals are worth more. This is how hacksilver works. Using weight as a basis for value has several problems — coins are heavy and hard to transport, the population may get too large for the available metal, and too many coins in circulation invites inflation.
The second way is to base the value of coins on a commodity that everyone needs, which regulates its own scarcity through spoilage. Ancient economies are usually agrarian, meaning they are based on farming — so cereals, or grain crops, determine the value of money. In feudal Japan, a single koku represented a year’s supply of rice for one person. Using this method, coins can be made very small and portable; holes can be cut in them to save metal and they can be strung through knotted ropes to create “strings” of cash, as in ancient China. The local government recognizes their value based on bushels of wheat, apples, or whatever.
Currencies
| Currency | Rate | Use |
|---|---|---|
| Copper | 10 = 1 silver | A petty unit of currency, used by common folk for small everyday purchases. Used for things like beer, snacks, tolls, small repairs, lodging for a single night in a roadhouse, and so forth. |
| Silver | 10 = 1 gold | The dominant unit of currency, used for significant things like equipment, lodging, transportation, and monthly living expenses. The value of most objects is measured in silver. The value of silver is typically backed by bushels of cereal crops. |
| Gold | 10 = 1 platinum | Gold is rare, and used by the elite for major transactions or the purchase of very expensive goods. Examples include suits of armor, vehicles or ships, spellcasting services, etc. |
| Tradebars | 100–500 silver | Tradebars are small ingots of precious metal, usually silver or gold, that have a fixed weight and are stamped with various seals to verify their weight and value. They are used by trade cartels, noble houses, major guilds, and rich merchants for large commodity transactions like grain, oil, warships, etc. Usually tons of grain or ore. |
| Promissory Notes | variable | Only the largest and most powerful organizations can reliably issue promissory notes in a medieval or Renaissance setting. The value of such notes varies, but they are always highly ornate and hard to counterfeit. The issuer must honor and defend the value of such notes at all costs, or they become worthless. |
Living Expenses
Each tier of lifestyle is paid monthly, in silver. It covers shelter, food, and the degree of legal protection the character can expect from local authorities.
Poor
10 sp/month- Housing
- A simple bed in a shared room, common area, or flophouse.
- People
- Cheap laborers, beggars, refugees, and so forth.
- Food
- Bread, porridge, vegetables, fruit, eggs, rabbits, smoked fish or shrimp, and tea.
- Law
- Legal protection is minimal.
Modest
20 sp/month- Housing
- A small room in a shared household or tenement.
- People
- Servants or paid laborers with minimal skills, common soldiers, and similar.
- Food
- Also includes stews, beans, cheap sausage, mutton, chicken, honey, and weak beer.
- Law
- Legal protection is basic.
Good
30 sp/month- Housing
- A small house, suitable for a family of 3–5.
- People
- Successful tradesmen or small business owners, usually part of a guild.
- Food
- Also includes pies, pastries, soups, cheese, wine, smoked pork or bacon, fresh fish, and a variety of spices.
- Law
- Legal protection is good.
Affluent
40 sp/month- Housing
- A substantial house suitable for a large family, with an enclosed yard or garden.
- People
- High-level tradesmen with valuable skills, military officers, and similar.
- Food
- Also includes beef, duck, venison, chocolate, coffee, sauces, and extravagant baked goods.
- Law
- Legal protection is excellent.
Extravagant
50 sp/month- Housing
- An estate, with the support of a wealthy organization or noble family.
- People
- Landowners, government officials, high-ranking military officers, and similar.
- Food
- More extravagant versions of those enjoyed by the affluent, with spices and sauces.
- Law
- Legal protection is absolute.
Economy & Taxation
Using coins for currency also influences taxation. It’s hard to prove that someone got handed a bag of coins if they aren’t tied down and easy to audit. In a fantasy setting, businesses and landowners pay most of the taxes because they’re the easiest people to tax. That also means the government protects these people more than anyone else.
It’s even easier to tax a guild that collects fees and dues from its members. If push comes to shove, the local authorities will always side with the guy who owns his own establishment and keeps his books in order.
This means “not adventurers” — since they’re often a bunch of murder hobo transients, looting their way through life and hiding cash in bags of holding buried in chests in the desert.