What Is a Shilling? Definition, History, and Value

The shilling represents a historical unit of currency across various monetary systems. It served as a widely recognized medium of exchange for centuries, particularly within the British monetary system and its associated territories. Understanding the shilling offers insight into the evolution of global currencies and the complexities of pre-decimal financial structures.

Definition and Origins

The term “shilling” originated from the Anglo-Saxon word “Scilling,” an accounting term that historically represented a “twentieth of a pound.” Its roots trace to the Proto-Germanic “skiljaną,” meaning “to divide.” Initially, the shilling functioned as a unit of account rather than a physical coin. This monetary unit, divided into 12 pence and 20 shillings to a pound, was established in the Carolingian monetary system around 796 AD. The first physical shilling coins, known as “testoons,” were minted in England during the reign of Henry VII, gaining the name “shilling” by the mid-16th century.

Historical Usage and Value

The shilling became a common denomination, widely circulated throughout the British Empire and Commonwealth countries. In the British monetary system, it equated to twelve pre-decimal pence. This system, often abbreviated as “£sd” (pounds, shillings, and pence), was based on the Latin terms libra, solidus, and denarius. A price of ten shillings, for instance, was commonly written as “10/-“, with the slash representing the shilling.

The purchasing power of a shilling varied over time; in the 1800s, a shilling often represented approximately a day’s wage for a laborer. For example, an 1850 shilling had a purchasing power comparable to about £5 today. The shilling continued in widespread use until the mid-20th century, but its value as a silver coin diminished when its silver content became fractional in 1921, and it was replaced with cupronickel in 1947. The United Kingdom phased out the shilling during decimalization, which culminated on Decimal Day, February 15, 1971. At this point, the shilling coin was directly replaced by the new five-pence piece, which had an identical size and value.

Legacy and Modern References

Even after its discontinuation as a primary circulating currency in many parts of the world, the shilling retains a presence in language and culture. Common idioms still in use include “cut off with a shilling,” which referred to disinheriting someone from a will. Another phrase, “not the full shilling,” describes someone considered mentally deficient. The slang term “bob” was also widely used to refer to a shilling.

Today, the shilling is still the official currency in several East African countries, including Kenya, Tanzania, Uganda, and Somalia, as well as Somaliland. While they share the “shilling” name, these are distinct national currencies with different values and independent central banks, similar to how various countries use “dollar” as their currency name.