diff --git a/.agents/skills/interface-design/SKILL.md b/.agents/skills/interface-design/SKILL.md
index 92e1df4..f609d53 100644
--- a/.agents/skills/interface-design/SKILL.md
+++ b/.agents/skills/interface-design/SKILL.md
@@ -5,7 +5,7 @@ description: Craft-first interface design for dashboards, admin panels, SaaS app
 
 # Interface Design
 
-Build product interfaces with the craft of a top design team — Linear, Vercel, Stripe, Apple. The difference between those and generic output is not talent. It is that every decision was *decided*, the hierarchy is unmistakable, and a hundred small details are correct at once. This skill is how you get there.
+Build product interfaces with the craft of a top design team — Linear, Vercel, Stripe, Apple. The difference between those and generic output is not talent. It is that every decision was _decided_, the hierarchy is unmistakable, and a hundred small details are correct at once. This skill is how you get there.
 
 ## Scope
 
@@ -23,7 +23,7 @@ You will generate generic output. Your training has seen thousands of dashboards
 
 This happens because intent lives in prose, but code generation pulls from patterns. The gap between them is where defaults win. Process helps, but it doesn't guarantee craft. You have to catch yourself, and you have to know the concrete moves that defaults don't.
 
-**The bar:** If another AI, given a similar prompt, would produce substantially the same output, you have failed. Not different for its own sake — different because the interface emerged from *this* user, *this* task, *this* world. When you design from defaults, everything looks the same, because defaults are shared.
+**The bar:** If another AI, given a similar prompt, would produce substantially the same output, you have failed. Not different for its own sake — different because the interface emerged from _this_ user, _this_ task, _this_ world. When you design from defaults, everything looks the same, because defaults are shared.
 
 ---
 
@@ -31,9 +31,9 @@ This happens because intent lives in prose, but code generation pulls from patte
 
 Defaults disguise themselves as infrastructure — the parts that feel like they just need to work, not be designed.
 
-- **Typography feels like a container.** But type isn't holding your design, it *is* your design. The weight of a headline, the personality of a label, the texture of a paragraph shape how the product feels before anyone reads a word. Reaching for your usual font means you're not designing.
-- **Navigation feels like scaffolding.** But navigation *is* the product — where you are, where you can go, what matters. A page floating in space is a component demo, not software.
-- **Data feels like presentation.** But a number on screen is not design. What does it *mean* to the person looking? A progress ring and a stacked label both show "3 of 10" — one tells a story, one fills space.
+- **Typography feels like a container.** But type isn't holding your design, it _is_ your design. The weight of a headline, the personality of a label, the texture of a paragraph shape how the product feels before anyone reads a word. Reaching for your usual font means you're not designing.
+- **Navigation feels like scaffolding.** But navigation _is_ the product — where you are, where you can go, what matters. A page floating in space is a component demo, not software.
+- **Data feels like presentation.** But a number on screen is not design. What does it _mean_ to the person looking? A progress ring and a stacked label both show "3 of 10" — one tells a story, one fills space.
 - **Token names feel like implementation detail.** But `--ink` and `--parchment` evoke a world; `--gray-700` and `--surface-2` evoke a template. Someone reading only your tokens should guess what product this is.
 
 There are no structural decisions. Everything is design. The moment you stop asking "why this?" is the moment defaults take over.
@@ -50,7 +50,7 @@ Before touching code, answer these. Keep it a compact working brief unless the d
 
 If the prompt is too vague to identify the human, task, and feel, ask one concise question. If context allows a responsible assumption, state it briefly and proceed.
 
-**Intent must be systemic.** Saying "warm" then using cold colors is not following through. If the intent is warm: surfaces, text, borders, accents, semantic colors, type — all warm. If dense: spacing, type size, information architecture — all dense. Check every token against the stated intent. For every choice — layout, color temperature, typeface, spacing scale, hierarchy — you must be able to say *why*. "It's common" or "it works" means you defaulted.
+**Intent must be systemic.** Saying "warm" then using cold colors is not following through. If the intent is warm: surfaces, text, borders, accents, semantic colors, type — all warm. If dense: spacing, type size, information architecture — all dense. Check every token against the stated intent. For every choice — layout, color temperature, typeface, spacing scale, hierarchy — you must be able to say _why_. "It's common" or "it works" means you defaulted.
 
 ---
 
@@ -61,7 +61,7 @@ This is where defaults get caught — or don't. Generic path: Task type → visu
 **Produce all four before proposing any direction:**
 
 - **Domain** — concepts, metaphors, vocabulary from this product's world. Not features — territory. Minimum 5.
-- **Color world** — what colors exist *naturally* here? Not "warm" or "cool" — go to the actual world. If this product were a physical space, what would you see? List 5+.
+- **Color world** — what colors exist _naturally_ here? Not "warm" or "cool" — go to the actual world. If this product were a physical space, what would you see? List 5+.
 - **Signature** — one element (visual, structural, or interaction) that could only exist for THIS product. If you can't name one, keep exploring.
 - **Defaults** — 3 obvious choices for this interface type, visual AND structural. You can't avoid patterns you haven't named.
 
@@ -75,7 +75,7 @@ If an inline visual-rendering tool is available in the session (e.g. a `show_wid
 
 Render at three moments:
 
-1. **Proposing a direction.** Alongside the Suggest + Ask block, render a small live specimen: the palette as actual swatches, the type scale in the real typeface, the surface-elevation steps as stacked cards, the signature element as a real component. The person should *see* "warm like a notebook," not read the words.
+1. **Proposing a direction.** Alongside the Suggest + Ask block, render a small live specimen: the palette as actual swatches, the type scale in the real typeface, the surface-elevation steps as stacked cards, the signature element as a real component. The person should _see_ "warm like a notebook," not read the words.
 2. **Designing a component.** Render the actual component (or a tight before/after, both variants side by side) so the craft decisions — spacing, borders, hierarchy, states — are visible, not asserted. Render the real states (default, hover, empty, error) where they matter.
 3. **Critiquing or auditing.** Render the current version and the improved version together so the gap is shown, not narrated.
 
@@ -83,8 +83,8 @@ Rules when rendering:
 
 - The widget shows the **visual only**. All reasoning, the domain exploration, the rejected-defaults list, and the recommendation stay in your response text — never paste prose into the widget.
 - Match the rendering tool's own design-system contract (load its `read_me`/guidance if it has one). Use its theme variables so the specimen inherits light/dark mode and sits native in the host. Don't fight the host chrome.
-- The specimen must still pass the checks below. A rendered default is still a default — rendering is how craft gets *seen*, not a substitute for it.
-- This renders to the *conversation*, not the project. The actual implementation still lands in the codebase through normal edits.
+- The specimen must still pass the checks below. A rendered default is still a default — rendering is how craft gets _seen_, not a substitute for it.
+- This renders to the _conversation_, not the project. The actual implementation still lands in the codebase through normal edits.
 
 The point: collapse the loop between "here's my thinking" and "here's what it looks like" into a single message the person can react to.
 
@@ -92,7 +92,7 @@ The point: collapse the loop between "here's my thinking" and "here's what it lo
 
 # Visual Hierarchy & Composition
 
-The single biggest driver of "this looks designed" versus "this looks generated." Defaults produce *flatness* — everything the same size, weight, and spacing, so nothing leads and the eye has nowhere to go. Craft produces *hierarchy* — the eye knows instantly what matters. These are concrete moves, not vibes.
+The single biggest driver of "this looks designed" versus "this looks generated." Defaults produce _flatness_ — everything the same size, weight, and spacing, so nothing leads and the eye has nowhere to go. Craft produces _hierarchy_ — the eye knows instantly what matters. These are concrete moves, not vibes.
 
 ## One focal point per view
 
@@ -100,15 +100,15 @@ Every screen has one thing the user came to do. That thing dominates — through
 
 ## Type scale is a ratio, and weight beats size
 
-Don't pick sizes by feel. Pick a ratio and step it: ~1.2 (minor third) for dense/calm UI, ~1.25 for most product UI, ~1.333 for expressive. From a 14–16px body that yields a *visibly* distinct scale, not 15/16/17 mush. A 14px base at 1.25: `caption 11 · body 14 · h4 16 · h3 18 · h2 22 · h1 28 · display 44+`. Round to whole pixels and to your spacing grid.
+Don't pick sizes by feel. Pick a ratio and step it: ~1.2 (minor third) for dense/calm UI, ~1.25 for most product UI, ~1.333 for expressive. From a 14–16px body that yields a _visibly_ distinct scale, not 15/16/17 mush. A 14px base at 1.25: `caption 11 · body 14 · h4 16 · h3 18 · h2 22 · h1 28 · display 44+`. Round to whole pixels and to your spacing grid.
 
 The Apple/Linear move: **weight and color do more hierarchy work than size.** A single 14px size holds three tiers through weight + opacity alone — `value: 600 / primary`, `label: 500 / secondary`, `meta: 400 / muted` — separating more cleanly than two regular weights two points apart. Build from three levers together (size, weight, color/opacity), never size alone. If you squint and can't tell headline from body from label, the hierarchy is too weak.
 
-Worked example — a metric, flat vs decided. *Flat:* `Revenue` / `$48,200` both 14px regular gray, three identical boxes, no focal point. *Decided:* `REVENUE` 11px/500/muted/tracked · `$48,200` 28px/600/primary/tabular-nums (the hero) · `↑12%` 12px/500/success. Same data, opposite legibility — the figure leads through size+weight+one accent, the label is demoted, secondary metrics drop to a lower tier.
+Worked example — a metric, flat vs decided. _Flat:_ `Revenue` / `$48,200` both 14px regular gray, three identical boxes, no focal point. _Decided:_ `REVENUE` 11px/500/muted/tracked · `$48,200` 28px/600/primary/tabular-nums (the hero) · `↑12%` 12px/500/success. Same data, opposite legibility — the figure leads through size+weight+one accent, the label is demoted, secondary metrics drop to a lower tier.
 
 ## Density is a decision, expressed in px
 
-Linear is tight; Stripe is airy. Neither is default — both are *chosen*, and the choice is the same number repeated everywhere. Decide the density up front and name the values: a tool panel at 12–16px padding feels workbench-tight; the same card at 24px feels like a brochure. The same number can be right in one context and lazy in another. Pick deliberately, then hold it.
+Linear is tight; Stripe is airy. Neither is default — both are _chosen_, and the choice is the same number repeated everywhere. Decide the density up front and name the values: a tool panel at 12–16px padding feels workbench-tight; the same card at 24px feels like a brochure. The same number can be right in one context and lazy in another. Pick deliberately, then hold it.
 
 ## Spatial rhythm — breathe unevenly
 
@@ -121,7 +121,7 @@ A 280px sidebar next to full-width content says "navigation serves content." A 3
 ## Distribution and restraint (the "expensive" look)
 
 - **~60/30/10**: a dominant neutral surface, a secondary tone, and ~10% accent. Color is a scarce resource — most of the screen is structure.
-- **One accent, used with intention**, beats five colors used without thought. Gray builds structure; color *communicates* (status, action, identity). Unmotivated color is noise.
+- **One accent, used with intention**, beats five colors used without thought. Gray builds structure; color _communicates_ (status, action, identity). Unmotivated color is noise.
 - **Hierarchy through space and weight, not lines.** Reach for whitespace and tonal shift before borders and dividers. The most premium interfaces are mostly invisible structure.
 - **Optical sizing on large type**: tighten letter-spacing as type gets bigger (headings slightly negative tracking); loosen line-height on body for readability (~1.5). Tight type reads as crafted; default tracking on a 32px heading reads as a document.
 
@@ -131,13 +131,13 @@ A 280px sidebar next to full-width content says "navigation serves content." A 3
 
 ## Subtle Layering (the backbone)
 
-Regardless of direction, this applies to everything. You should *barely notice the system working* — when you look at Vercel's dashboard you don't think "nice borders," you just understand the structure. Invisible craft is working craft.
+Regardless of direction, this applies to everything. You should _barely notice the system working_ — when you look at Vercel's dashboard you don't think "nice borders," you just understand the structure. Invisible craft is working craft.
 
 **Surface elevation.** Surfaces stack: a dropdown sits above a card sits above the page. Build a numbered system — base, then increasing levels. Each jump is only a few percentage points of lightness — e.g. dark mode base → +7% → +9% → +12%; light mode stays light and adds shadow instead. You can barely see one step in isolation, but stacked, the hierarchy emerges. Whisper-quiet shifts you feel rather than see.
 
 - **Sidebars:** same background as canvas, not a different color. Different colors fragment the space into "sidebar world" and "content world." A subtle border is enough.
 - **Dropdowns/popovers:** one level above their parent surface, or they blend in and layering is lost.
-- **Inputs:** slightly *darker* than surroundings, not lighter. Inputs are inset — they receive content. A darker fill signals "type here" without heavy borders.
+- **Inputs:** slightly _darker_ than surroundings, not lighter. Inputs are inset — they receive content. A darker fill signals "type here" without heavy borders.
 
 **Borders.** Should disappear when you're not looking for them, but be findable when you need structure. Low-opacity rgba blends with the background and defines an edge without demanding attention; solid hex borders look harsh by comparison. Dark mode lives around `rgba(255,255,255,0.06–0.12)`, light mode slightly higher. Build a progression — standard, softer separation, emphasis, focus-ring — and match intensity to the importance of the boundary.
 
@@ -145,7 +145,7 @@ Regardless of direction, this applies to everything. You should *barely notice t
 
 ## Infinite Expression
 
-Every pattern has infinite expressions — **no two interfaces should look the same.** A metric display could be a hero number, inline stat, sparkline, gauge, progress bar, comparison delta, or trend badge. Same sidebar width, same card grid, same icon-left-number-big-label-small metric boxes every time *signals AI-generated immediately* and is forgettable. Linear's cards don't look like Notion's; Vercel's metrics don't look like Stripe's. Same concepts, infinite expressions. Before building, ask: what's the ONE thing users do here, and what product solves a similar problem brilliantly?
+Every pattern has infinite expressions — **no two interfaces should look the same.** A metric display could be a hero number, inline stat, sparkline, gauge, progress bar, comparison delta, or trend badge. Same sidebar width, same card grid, same icon-left-number-big-label-small metric boxes every time _signals AI-generated immediately_ and is forgettable. Linear's cards don't look like Notion's; Vercel's metrics don't look like Stripe's. Same concepts, infinite expressions. Before building, ask: what's the ONE thing users do here, and what product solves a similar problem brilliantly?
 
 ## Color Lives Somewhere
 
@@ -178,7 +178,7 @@ The most common way AI degrades a codebase: it hand-rolls what already exists. A
 ## Controls: native → primitive → hand-roll
 
 1. **Native HTML first** where it works. A `<button>` is a button; an `<a>` is a link; `<input type="text">`, `<dialog>`, `<details>` exist. Never `<div onClick>` something the platform already provides — you lose focus, keyboard, and semantics for free.
-2. **A battle-tested headless primitive** for anything stateful and hard to get right — select, combobox, dialog, popover, tooltip, dropdown menu, tabs, date picker. These ship keyboard navigation, focus management, ARIA, and collision/positioning that take days to reproduce correctly. Reach for what the ecosystem already trusts (e.g. Radix UI, React Aria, Ark, Headless UI, Vaul, `cmdk` in React; the equivalent accessible primitive in other frameworks), then style it to your direction. "Build custom" means *compose and style a primitive*, not write the behavior from scratch.
+2. **A battle-tested headless primitive** for anything stateful and hard to get right — select, combobox, dialog, popover, tooltip, dropdown menu, tabs, date picker. These ship keyboard navigation, focus management, ARIA, and collision/positioning that take days to reproduce correctly. Reach for what the ecosystem already trusts (e.g. Radix UI, React Aria, Ark, Headless UI, Vaul, `cmdk` in React; the equivalent accessible primitive in other frameworks), then style it to your direction. "Build custom" means _compose and style a primitive_, not write the behavior from scratch.
 3. **Hand-roll only as a genuine last resort** — no primitive fits, or there's no dependency budget. Then you owe the complete behavior contract: keyboard nav (arrow keys, Enter, Escape), focus trap/return, full ARIA roles and state, click-outside, and scroll-lock for overlays. A styled control missing these is broken, however good it looks.
 
 ## Styling: system → component → token → utility
@@ -186,7 +186,7 @@ The most common way AI degrades a codebase: it hand-rolls what already exists. A
 1. **If the project has a design system, use it.** shadcn/`Button`, a CVA variant set, a theme, a component library — use `<Button variant="…">` and the existing variants before writing a one-off. Match the codebase's styling convention (Tailwind, CSS modules, CSS-in-JS), don't introduce your own.
 2. **When a styled element repeats, extract a component.** The same utility string on nine buttons is duplication, not design. One component (or one CVA/variant) owns it; call sites stay clean. Extract on the second real reuse, not the first.
 3. **Bind to semantic tokens, not hardcoded literals.** `bg-card border-border text-muted-foreground`, not `bg-white border-gray-200 text-gray-500`. Hardcoded `gray-200`/`#fff`/`px-4` raw values are the Tailwind form of random hex — they break theming and dark mode and signal no system. (See Token Architecture below.)
-4. **Inline utilities are for genuine one-offs** — a layout nudge used once. The tell of slop is the *same* long className sprayed everywhere; that's a missing component or token, not styling.
+4. **Inline utilities are for genuine one-offs** — a layout nudge used once. The tell of slop is the _same_ long className sprayed everywhere; that's a missing component or token, not styling.
 
 ---
 
@@ -223,7 +223,7 @@ A hundred small details compound into "feels great." These are the highest-lever
 
 ## Motion
 
-Motion should be felt, not watched. Fast, purposeful, and *never* in the way.
+Motion should be felt, not watched. Fast, purposeful, and _never_ in the way.
 
 - **Should it animate at all?** Actions repeated 100+×/day (keyboard shortcuts, command palette) get **no** animation — it makes them feel slow. Occasional surfaces (modals, drawers, toasts) get standard animation. Rare/first-run moments can add delight.
 - **Duration < 300ms** for UI. Button press 100–160ms; tooltips/popovers 125–200ms; dropdowns 150–250ms; modals/drawers 200–500ms. A 180ms dropdown feels more responsive than a 400ms one.
@@ -259,19 +259,22 @@ Motion should be felt, not watched. Fast, purposeful, and *never* in the way.
 # Workflow
 
 ## Communication
+
 Be invisible. Don't announce modes or narrate process. Never say "I'm in ESTABLISH MODE" or "Let me check system.md." Jump into the work; state suggestions with reasoning.
 
 ## Execution discipline
+
 Use this skill as a working discipline, not just advice. When editing UI:
 
 1. Inspect the existing app, design tokens, component patterns, and `.interface-design/system.md` if present.
 2. Make the domain exploration concrete before choosing layout, color, type, density, and navigation.
-3. For greenfield screens, major redesigns, or vague direction, consider a visual reference pass *if an image-generation tool is available* (skip otherwise — it's a companion, never the deliverable). Four modes: **direction board** (2–3 abstract mood/material/color explorations before code — no real UI), **UI reference** (medium-fidelity composition for a chosen direction), **paintover** (a stronger version of an existing screenshot), **raster asset** (empty-state art, textures — never icons/logos/charts). Always reject generic SaaS, illegible text, off-domain palettes; extract palette/density/proportions/signature, then build it in real code and verify in the browser.
+3. For greenfield screens, major redesigns, or vague direction, consider a visual reference pass _if an image-generation tool is available_ (skip otherwise — it's a companion, never the deliverable). Four modes: **direction board** (2–3 abstract mood/material/color explorations before code — no real UI), **UI reference** (medium-fidelity composition for a chosen direction), **paintover** (a stronger version of an existing screenshot), **raster asset** (empty-state art, textures — never icons/logos/charts). Always reject generic SaaS, illegible text, off-domain palettes; extract palette/density/proportions/signature, then build it in real code and verify in the browser.
 4. Patch the implementation, then run the relevant build/typecheck/tests when available.
 5. Verify visually for non-trivial UI. Use the inline render tool, a local browser, or screenshots at desktop and mobile widths; fix overlap, broken spacing, blank states, unreadable text, missing assets, and generic composition before presenting.
 6. Keep user-facing updates short. Don't expose long private design monologues — surface the useful recommendation or decision.
 
 ## Suggest + Ask
+
 Lead with exploration and recommendation, then confirm:
 
 ```
@@ -285,10 +288,12 @@ Direction:  [approach connecting to the above]
 Then ask: "Does that direction feel right?" If an inline render tool is available, render a live specimen of the direction in the same message — show the palette, type, and signature, don't just name them.
 
 ## Build flow
+
 - **If `.interface-design/system.md` exists:** read it and apply — decisions are made.
 - **If not:** explore domain (all four outputs) → propose (reference all four) → confirm when the direction is ambiguous or costly to change → build → run the checks below → offer to save.
 
 ## The checks (before showing)
+
 Run these against your output; if any fails, iterate before presenting.
 
 - **Swap test** — swap your typeface for the usual one, your layout for a standard template: would anything feel different? Where swapping wouldn't matter is where you defaulted.
diff --git a/.agents/skills/interface-design/agents/openai.yaml b/.agents/skills/interface-design/agents/openai.yaml
index 69138ea..c43dad9 100644
--- a/.agents/skills/interface-design/agents/openai.yaml
+++ b/.agents/skills/interface-design/agents/openai.yaml
@@ -1,6 +1,6 @@
 interface:
-  display_name: "Interface Design"
-  short_description: "Craft-first product UI guidance"
-  default_prompt: "Use $interface-design to design or refine a product interface with a domain-specific visual system and image-based references when useful."
+  display_name: 'Interface Design'
+  short_description: 'Craft-first product UI guidance'
+  default_prompt: 'Use $interface-design to design or refine a product interface with a domain-specific visual system and image-based references when useful.'
 policy:
   allow_implicit_invocation: true
diff --git a/.prettierignore b/.prettierignore
index 653ba85..04d24aa 100644
--- a/.prettierignore
+++ b/.prettierignore
@@ -1,4 +1,5 @@
 package-lock.json
 pnpm-lock.yaml
 yarn.lock
-.convex
\ No newline at end of file
+.convex
+convex/_generated
diff --git a/convex/dashboard.ts b/convex/dashboard.ts
index 867e36b..7345e51 100644
--- a/convex/dashboard.ts
+++ b/convex/dashboard.ts
@@ -54,6 +54,7 @@ export const overview = authedQuery({
         date: v.string(),
         amount: v.number(),
         merchantName: v.optional(v.string()),
+        categoryId: v.optional(v.id('categories')),
         categoryName: v.optional(v.string()),
         categoryColor: v.optional(v.string()),
       }),
@@ -179,6 +180,7 @@ export const overview = authedQuery({
           date: t.date,
           amount: t.amount,
           merchantName: t.merchantName ?? t.originalDescription,
+          categoryId: t.categoryId,
           categoryName: cat?.name,
           categoryColor: cat?.color,
         }
@@ -257,16 +259,19 @@ export const spendingPace = authedQuery({
     const todayMonth = args.today.slice(0, 7)
     const todayDay = Number(args.today.slice(8, 10))
     const throughDay =
-      todayMonth === args.month
-        ? Math.min(days, Math.max(1, todayDay))
-        : days
+      todayMonth === args.month ? Math.min(days, Math.max(1, todayDay)) : days
 
     const lastMonthKey = shiftMonth(args.month, -1)
     const lastYearKey = shiftMonth(args.month, -12)
 
     const [thisMonth, lastMonth, lastYear] = await Promise.all([
       cumulativeSpend(ctx, ctx.user._id, args.month, throughDay),
-      cumulativeSpend(ctx, ctx.user._id, lastMonthKey, daysInMonth(lastMonthKey)),
+      cumulativeSpend(
+        ctx,
+        ctx.user._id,
+        lastMonthKey,
+        daysInMonth(lastMonthKey),
+      ),
       cumulativeSpend(ctx, ctx.user._id, lastYearKey, daysInMonth(lastYearKey)),
     ])
 
diff --git a/convex/transactions.ts b/convex/transactions.ts
index 19a31b5..ed6d97a 100644
--- a/convex/transactions.ts
+++ b/convex/transactions.ts
@@ -213,6 +213,77 @@ export const recent = authedQuery({
   },
 })
 
+/** Distinct merchant names from recent activity — enough to pick from, bounded. */
+export const listMerchants = authedQuery({
+  args: {},
+  returns: v.array(v.string()),
+  handler: async (ctx) => {
+    const txs = await ctx.db
+      .query('transactions')
+      .withIndex('by_user_date', (q) => q.eq('userId', ctx.user._id))
+      .order('desc')
+      .take(400)
+
+    const names = new Set<string>()
+    for (const tx of txs) {
+      const name = (tx.merchantName ?? tx.originalDescription).trim()
+      if (name) names.add(name)
+    }
+    return [...names].sort((a, b) => a.localeCompare(b))
+  },
+})
+
+/** Mint a Flex category and file the charge in one write so a failed assign cannot orphan it. */
+export const createAndAssignCategory = authedMutation({
+  args: {
+    transactionId: v.id('transactions'),
+    name: v.string(),
+  },
+  returns: v.id('categories'),
+  handler: async (ctx, args) => {
+    const tx = await ctx.db.get(args.transactionId)
+    if (!tx || tx.userId !== ctx.user._id) throw new Error('Not found')
+
+    const name = args.name.trim()
+    if (!name) throw new Error('Name is required')
+
+    const reused = await ctx.db
+      .query('categories')
+      .withIndex('by_user_name', (q) =>
+        q.eq('userId', ctx.user._id).eq('name', name),
+      )
+      .first()
+
+    let categoryId = reused?._id
+    let budgetType = reused?.budgetType
+    if (!categoryId) {
+      const existing = await ctx.db
+        .query('categories')
+        .withIndex('by_user', (q) => q.eq('userId', ctx.user._id))
+        .collect()
+      categoryId = await ctx.db.insert('categories', {
+        userId: ctx.user._id,
+        name,
+        icon: 'tag',
+        color: '#c27803',
+        isSystem: false,
+        budgetType: 'flex',
+        excludeFromBudget: false,
+        sortOrder: existing.length,
+      })
+      budgetType = 'flex'
+    }
+
+    await ctx.db.patch(args.transactionId, {
+      categoryId,
+      categorySource: 'user',
+      isTransfer: budgetType === 'transfer',
+    })
+
+    return categoryId
+  },
+})
+
 export const updateCategory = authedMutation({
   args: {
     transactionId: v.id('transactions'),
diff --git a/src/components/chart-hover-tip.tsx b/src/components/chart-hover-tip.tsx
index 2f5bbad..8705879 100644
--- a/src/components/chart-hover-tip.tsx
+++ b/src/components/chart-hover-tip.tsx
@@ -39,11 +39,7 @@ export function ChartHoverTip({
   const flip = y < 56
   const left = Math.min(Math.max(x, 72), window.innerWidth - 72)
   const lines =
-    rows && rows.length > 0
-      ? rows
-      : value != null
-        ? [{ value, detail }]
-        : []
+    rows && rows.length > 0 ? rows : value != null ? [{ value, detail }] : []
 
   return createPortal(
     <div
diff --git a/src/components/search-select.tsx b/src/components/search-select.tsx
new file mode 100644
index 0000000..d8b144e
--- /dev/null
+++ b/src/components/search-select.tsx
@@ -0,0 +1,143 @@
+import { CheckIcon, Plus } from 'lucide-react'
+import { useState } from 'react'
+import {
+  Command,
+  CommandEmpty,
+  CommandGroup,
+  CommandInput,
+  CommandItem,
+  CommandList,
+} from '#/components/ui/command'
+import {
+  Popover,
+  PopoverContent,
+  PopoverTrigger,
+} from '#/components/ui/popover'
+import { cn } from '#/lib/utils'
+
+export type SearchSelectOption = {
+  value: string
+  label: string
+  keywords?: string
+  icon?: React.ReactNode
+  muted?: boolean
+  indent?: boolean
+}
+
+/**
+ * A ledger-row select: the trigger is the current label, the menu is a
+ * searchable list that can mint a new value from whatever you typed.
+ */
+export function SearchSelect({
+  value,
+  options,
+  onSelect,
+  onCreate,
+  placeholder = 'Select',
+  searchPlaceholder = 'Search…',
+  emptyText = 'Nothing matches.',
+  createLabel,
+  disabled,
+  align = 'start',
+  className,
+  children,
+  'aria-label': ariaLabel,
+}: {
+  value?: string
+  options: Array<SearchSelectOption>
+  onSelect: (value: string) => void
+  onCreate?: (name: string) => void
+  placeholder?: string
+  searchPlaceholder?: string
+  emptyText?: string
+  createLabel?: (query: string) => string
+  disabled?: boolean
+  align?: 'start' | 'center' | 'end'
+  className?: string
+  children?: React.ReactNode
+  'aria-label': string
+}) {
+  const [open, setOpen] = useState(false)
+  const [query, setQuery] = useState('')
+
+  const trimmed = query.trim()
+  const canCreate =
+    !!onCreate &&
+    trimmed.length > 0 &&
+    !options.some((o) => o.label.toLowerCase() === trimmed.toLowerCase())
+
+  const close = () => {
+    setOpen(false)
+    setQuery('')
+  }
+
+  return (
+    <Popover
+      open={open}
+      onOpenChange={(next) => {
+        setOpen(next)
+        if (!next) setQuery('')
+      }}
+    >
+      <PopoverTrigger
+        disabled={disabled}
+        aria-label={ariaLabel}
+        className={cn('inline-pick', className)}
+      >
+        {children ?? (
+          <span className="truncate text-muted-foreground">{placeholder}</span>
+        )}
+      </PopoverTrigger>
+      <PopoverContent align={align} className="w-64 p-0 shadow-none">
+        <Command>
+          <CommandInput
+            placeholder={searchPlaceholder}
+            value={query}
+            onValueChange={setQuery}
+          />
+          <CommandList>
+            {canCreate ? null : <CommandEmpty>{emptyText}</CommandEmpty>}
+            <CommandGroup>
+              {options.map((opt) => (
+                <CommandItem
+                  key={opt.value}
+                  value={`${opt.label} ${opt.keywords ?? ''} ${opt.value}`}
+                  className={cn(
+                    'text-[13px]',
+                    opt.indent && 'pl-6',
+                    opt.muted && 'text-muted-foreground',
+                  )}
+                  onSelect={() => {
+                    if (opt.value !== value) onSelect(opt.value)
+                    close()
+                  }}
+                >
+                  {opt.icon}
+                  <span className="min-w-0 flex-1 truncate">{opt.label}</span>
+                  {opt.value === value ? (
+                    <CheckIcon className="size-3.5 text-muted-foreground" />
+                  ) : null}
+                </CommandItem>
+              ))}
+            </CommandGroup>
+            {canCreate ? (
+              <CommandGroup className="border-t border-border/70">
+                <CommandItem
+                  value={`${trimmed} create`}
+                  className="text-[13px] text-[var(--sea-ink)]"
+                  onSelect={() => {
+                    onCreate(trimmed)
+                    close()
+                  }}
+                >
+                  <Plus className="size-3.5 text-muted-foreground" />
+                  {createLabel?.(trimmed) ?? `Create “${trimmed}”`}
+                </CommandItem>
+              </CommandGroup>
+            ) : null}
+          </CommandList>
+        </Command>
+      </PopoverContent>
+    </Popover>
+  )
+}
diff --git a/src/components/spending-chart.tsx b/src/components/spending-chart.tsx
index 1102b1b..f7cd851 100644
--- a/src/components/spending-chart.tsx
+++ b/src/components/spending-chart.tsx
@@ -71,7 +71,6 @@ function areaPath(points: Array<Point>, axisDays: number, max: number): string {
   const line = linePath(points, axisDays, max)
   const last = points[points.length - 1]
   const first = points[0]
-  if (!last || !first) return ''
   return `${line} L ${dayX(last.day, axisDays)} ${H} L ${dayX(first.day, axisDays)} ${H} Z`
 }
 
@@ -203,7 +202,11 @@ export function SpendingChart({
           >
             <defs>
               <linearGradient id={gid} x1="0" y1="0" x2="0" y2="1">
-                <stop offset="0%" stopColor="var(--lagoon)" stopOpacity="0.28" />
+                <stop
+                  offset="0%"
+                  stopColor="var(--lagoon)"
+                  stopOpacity="0.28"
+                />
                 <stop offset="100%" stopColor="var(--lagoon)" stopOpacity="0" />
               </linearGradient>
             </defs>
diff --git a/src/routes/app/index.tsx b/src/routes/app/index.tsx
index 8304a48..ed30a96 100644
--- a/src/routes/app/index.tsx
+++ b/src/routes/app/index.tsx
@@ -1,6 +1,7 @@
 import { createFileRoute, Link } from '@tanstack/react-router'
-import { useQuery } from 'convex/react'
+import { useMutation, useQuery } from 'convex/react'
 import { Fragment, useMemo, useState } from 'react'
+import { toast } from 'sonner'
 import { api } from '../../../convex/_generated/api'
 import type { Id } from '../../../convex/_generated/dataModel'
 import {
@@ -9,8 +10,6 @@ import {
   EmptyState,
   HeroMetric,
   RowGroupHeader,
-  RowMeta,
-  RowTitle,
 } from '#/components/dense'
 import { Page, PageBody, PageSummary, Panel } from '#/components/panel'
 import { CategoryDonut } from '#/components/category-donut'
@@ -18,6 +17,8 @@ import { AppShell } from '#/components/layout/app-shell'
 import { Money } from '#/components/money'
 import { PaceBar } from '#/components/pace-bar'
 import { PlaidLinkButton } from '#/components/plaid-link-button'
+import { SearchSelect } from '#/components/search-select'
+import type { SearchSelectOption } from '#/components/search-select'
 import { SpendingChart } from '#/components/spending-chart'
 import {
   Select,
@@ -47,6 +48,8 @@ export const Route = createFileRoute('/app/')({
     prewarmQueries(
       { query: api.dashboard.overview },
       { query: api.budgets.getMonth },
+      { query: api.categories.list },
+      { query: api.transactions.listMerchants },
       {
         query: api.dashboard.spendingPace,
         args: { month: currentMonth(), today: currentDay() },
@@ -90,6 +93,8 @@ function DashboardPage() {
   const data = useQuery(api.dashboard.overview)
   const budget = useQuery(api.budgets.getMonth, {})
   const pace = useQuery(api.dashboard.spendingPace, { month, today })
+  const categories = useQuery(api.categories.list)
+  const merchants = useQuery(api.transactions.listMerchants)
 
   const attention = useMemo<Array<AttentionItem>>(() => {
     if (!data) return []
@@ -387,15 +392,12 @@ function DashboardPage() {
                     }
                   />
                   {day.rows.map((tx) => (
-                    <li key={tx._id} className="data-row">
-                      <div className="min-w-0">
-                        <RowTitle>{tx.merchantName}</RowTitle>
-                        {tx.categoryName ? (
-                          <RowMeta>{tx.categoryName}</RowMeta>
-                        ) : null}
-                      </div>
-                      <Money amount={tx.amount} plaid />
-                    </li>
+                    <RecentRow
+                      key={tx._id}
+                      tx={tx}
+                      merchants={merchants ?? []}
+                      categories={categories ?? []}
+                    />
                   ))}
                 </Fragment>
               ))}
@@ -412,6 +414,151 @@ function DashboardPage() {
   )
 }
 
+type RecentTx = NonNullable<
+  (typeof api.dashboard.overview)['_returnType']
+>['recent'][number]
+type CategoryList = NonNullable<(typeof api.categories.list)['_returnType']>
+
+function categoryFamilies(categories: CategoryList) {
+  const ids = new Set(categories.map((c) => c._id))
+  const childrenOf = new Map<string, CategoryList>()
+  const roots: CategoryList = []
+  for (const c of categories) {
+    if (c.parentId && ids.has(c.parentId)) {
+      const siblings = childrenOf.get(c.parentId)
+      if (siblings) siblings.push(c)
+      else childrenOf.set(c.parentId, [c])
+    } else {
+      roots.push(c)
+    }
+  }
+  return { roots, childrenOf }
+}
+
+function RecentRow({
+  tx,
+  merchants,
+  categories,
+}: {
+  tx: RecentTx
+  merchants: Array<string>
+  categories: CategoryList
+}) {
+  const updateMeta = useMutation(api.transactions.updateMeta)
+  const updateCategory = useMutation(api.transactions.updateCategory)
+  const createAndAssignCategory = useMutation(
+    api.transactions.createAndAssignCategory,
+  )
+  const [busy, setBusy] = useState(false)
+
+  const merchantOptions = useMemo(() => {
+    const names = new Set(merchants)
+    if (tx.merchantName) names.add(tx.merchantName)
+    return [...names]
+      .sort((a, b) => a.localeCompare(b))
+      .map((name) => ({ value: name, label: name }))
+  }, [merchants, tx.merchantName])
+
+  const categoryOptions = useMemo(() => {
+    const families = categoryFamilies(categories)
+    const items: Array<SearchSelectOption> = []
+    for (const parent of families.roots) {
+      items.push({
+        value: parent._id,
+        label: parent.name,
+        icon: <CategoryDot color={parent.color} className="size-1.5" />,
+      })
+      for (const child of families.childrenOf.get(parent._id) ?? []) {
+        items.push({
+          value: child._id,
+          label: child.name,
+          keywords: parent.name,
+          icon: <CategoryDot color={child.color} className="size-1.5" />,
+          muted: true,
+          indent: true,
+        })
+      }
+    }
+    return items
+  }, [categories])
+
+  const selected = categories.find((c) => c._id === tx.categoryId)
+
+  const setMerchant = (name: string) => {
+    if (name === tx.merchantName) return
+    setBusy(true)
+    void updateMeta({ transactionId: tx._id, merchantName: name })
+      .then(() => toast.success('Merchant updated'))
+      .catch((e: Error) => toast.error(e.message))
+      .finally(() => setBusy(false))
+  }
+
+  const setCategory = (categoryId: Id<'categories'>) => {
+    if (categoryId === tx.categoryId) return
+    setBusy(true)
+    void updateCategory({ transactionId: tx._id, categoryId })
+      .then(() => toast.success('Category updated'))
+      .catch((e: Error) => toast.error(e.message))
+      .finally(() => setBusy(false))
+  }
+
+  const makeCategory = (name: string) => {
+    setBusy(true)
+    void createAndAssignCategory({ transactionId: tx._id, name })
+      .then(() => toast.success(`Created ${name}`))
+      .catch((e: Error) => toast.error(e.message))
+      .finally(() => setBusy(false))
+  }
+
+  return (
+    <li className="recent-tx">
+      <div className="recent-tx-main">
+        <SearchSelect
+          value={tx.merchantName}
+          options={merchantOptions}
+          onSelect={setMerchant}
+          onCreate={setMerchant}
+          searchPlaceholder="Search merchants…"
+          aria-label="Merchant"
+          disabled={busy}
+          className="inline-pick-title"
+        >
+          <span className="truncate">{tx.merchantName}</span>
+        </SearchSelect>
+        <SearchSelect
+          value={tx.categoryId}
+          options={categoryOptions}
+          onSelect={(id) => setCategory(id as Id<'categories'>)}
+          onCreate={makeCategory}
+          searchPlaceholder="Search categories…"
+          placeholder="Uncategorized"
+          createLabel={(q) => `Create “${q}”`}
+          aria-label="Category"
+          disabled={busy}
+          className="inline-pick-meta"
+        >
+          {selected ? (
+            <>
+              <CategoryDot color={selected.color} className="size-1.5" />
+              <span className="truncate">{selected.name}</span>
+            </>
+          ) : tx.categoryName ? (
+            <>
+              {tx.categoryColor ? (
+                <CategoryDot color={tx.categoryColor} className="size-1.5" />
+              ) : null}
+              <span className="truncate">{tx.categoryName}</span>
+            </>
+          ) : (
+            <span className="truncate">Uncategorized</span>
+          )}
+        </SearchSelect>
+      </div>
+      <Money amount={tx.amount} plaid className="shrink-0" />
+    </li>
+  )
+}
+
 function SpendingPanel({
   pace,
   compare,
@@ -461,7 +608,9 @@ function SpendingPanel({
             vs {COMPARE[compare].toLowerCase()}
           </SelectTrigger>
           <SelectContent align="end" position="popper">
-            <SelectItem value="last_month">This month vs. last month</SelectItem>
+            <SelectItem value="last_month">
+              This month vs. last month
+            </SelectItem>
             <SelectItem value="last_year">This month vs. last year</SelectItem>
           </SelectContent>
         </Select>
diff --git a/src/styles.css b/src/styles.css
index 5c5d70e..93eff27 100644
--- a/src/styles.css
+++ b/src/styles.css
@@ -728,6 +728,101 @@ pre code {
   display: flex;
 }
 
+/* Recent transactions: two stacked pickers, so the row leads from the top
+   (merchant + amount) and the category sits a step below instead of sharing
+   a vertically-centered pair of lines. */
+.data-list > li.recent-tx {
+  display: flex;
+  align-items: flex-start;
+  justify-content: space-between;
+  gap: 1rem;
+  padding-block: 0.75rem;
+}
+
+.recent-tx-main {
+  display: flex;
+  min-width: 0;
+  flex: 1;
+  flex-direction: column;
+  gap: 0.25rem;
+}
+
+.recent-tx-main .inline-pick {
+  width: 100%;
+}
+
+.recent-tx .amount-cell {
+  padding-top: 0.125rem;
+}
+
+/* Text that is also a select — same type as the static row, a muted wash
+   only when you go looking for it. */
+.inline-pick {
+  display: inline-flex;
+  align-items: center;
+  gap: 0.375rem;
+  min-width: 0;
+  max-width: 100%;
+  padding: 0.125rem 0.25rem;
+  margin-inline: -0.25rem;
+  border: 0;
+  border-radius: 4px;
+  background: transparent;
+  text-align: left;
+  cursor: pointer;
+  transition:
+    background-color var(--duration-fast) var(--ease-out),
+    color var(--duration-fast) var(--ease-out);
+}
+
+.inline-pick-title {
+  font-size: 13px;
+  font-weight: 500;
+  color: var(--sea-ink);
+}
+
+.inline-pick-meta {
+  font-size: 12px;
+  font-weight: 400;
+  color: var(--muted-foreground);
+}
+
+@media (hover: hover) and (pointer: fine) {
+  .inline-pick:hover {
+    background: color-mix(in oklab, var(--muted) 80%, transparent);
+  }
+}
+
+.inline-pick:focus-visible,
+.inline-pick[data-state='open'] {
+  background: color-mix(in oklab, var(--muted) 80%, transparent);
+}
+
+.inline-pick:focus-visible {
+  outline: none;
+  box-shadow: 0 0 0 2px color-mix(in oklab, var(--ring) 40%, transparent);
+}
+
+.inline-pick:active {
+  transform: scale(0.98);
+}
+
+.inline-pick:disabled {
+  cursor: default;
+  opacity: 0.6;
+  transform: none;
+}
+
+@media (hover: none) {
+  .recent-tx-main {
+    gap: 0.375rem;
+  }
+
+  .inline-pick {
+    padding-block: 0.25rem;
+  }
+}
+
 /* The one place a page raises its voice: a connection that stopped syncing, or
    a card due now. Tint plus a 2px rule so it reads as a state on the page, not
    as another section competing for the eye. */