Exchanges, bubbles and central banks · 1600s–1790s
1717
Britain's sinking fund
Parliament sets money aside every year to pay down the national debt.
After years of war, Britain owed more than it could comfortably carry. In 1717, under Robert Walpole, Parliament set up a sinking fund: part of certain tax revenues went into a separate pot each year to pay off the debt bit by bit.
Governments often raided it when money got tight, but the idea stuck. Companies later used sinking funds to set aside money to repay their bonds, and households borrowed the idea to save up for known expenses.
💡 Why it made sense then
A big bill that's certain to come is easier to meet in small, regular pieces than all at once.
🎮 In Journey Shares
Setting cash aside before a big city purchase is the same idea at the scale of one player.
Ideas it gave us
- 🧭 Sinking fund
A sinking fund is money you set aside bit by bit for a large expense you know is coming, like a car, a certification or a down payment, so it doesn't land on a credit card.
Practise with $10,000 in play money
Free. No real money involved.