diff --git a/src/components/fields/category-select-field.vue b/src/components/fields/category-select-field.vue
index e8a3c4ef..f221cd77 100644
--- a/src/components/fields/category-select-field.vue
+++ b/src/components/fields/category-select-field.vue
@@ -105,6 +105,15 @@
                 </template>
               </button>
             </template>
+
+            <router-link
+              to="/settings/categories"
+              :class="buttonVariants({ size: 'sm', variant: 'link', class: 'w-full gap-2 mt-4' })"
+            >
+              Create custom category
+
+              <ExternalLinkIcon class="size-4" />
+            </router-link>
           </div>
         </div>
       </div>
@@ -116,13 +125,13 @@
 
 <script setup lang="ts">
 import { ref, Ref, computed, watch, onBeforeUnmount } from "vue";
-import { ChevronLeftIcon, ChevronRightIcon } from "lucide-vue-next";
+import { ChevronLeftIcon, ChevronRightIcon, ExternalLinkIcon } from "lucide-vue-next";
 import { CategoryModel } from "shared-types";
 import { type FormattedCategory } from "@/common/types";
 import { cn } from "@/lib/utils";
 
 import { InputField, FieldError, FieldLabel } from "@/components/fields";
-import { Button } from "@/components/lib/ui/button";
+import { Button, buttonVariants } from "@/components/lib/ui/button";
 import CategoryCircle from "@/components/common/category-circle.vue";
 
 const props = withDefaults(
diff --git a/src/components/modals/modify-record/index.vue b/src/components/modals/modify-record/index.vue
index 28ff71db..e82ce4a5 100644
--- a/src/components/modals/modify-record/index.vue
+++ b/src/components/modals/modify-record/index.vue
@@ -1,5 +1,6 @@
 <script lang="ts" setup>
 import { ref, watch, computed, onMounted, nextTick, onUnmounted } from "vue";
+import { useRoute } from "vue-router";
 import { storeToRefs } from "pinia";
 import { useQueryClient } from "@tanstack/vue-query";
 import { useEventListener, watchOnce } from "@vueuse/core";
@@ -59,6 +60,12 @@ const props = withDefaults(defineProps<CreateRecordModalProps>(), {
 });
 
 const emit = defineEmits([MODAL_EVENTS.closeModal]);
+const closeModal = () => {
+  emit(MODAL_EVENTS.closeModal);
+};
+
+const route = useRoute();
+watch(() => route.path, closeModal);
 
 const { addErrorNotification } = useNotificationCenter();
 const { addModal } = useModalCenter();
@@ -328,10 +335,6 @@ const deleteTransactionRecordHandler = () => {
   linkedTransaction.value = null;
 };
 
-const closeModal = () => {
-  emit(MODAL_EVENTS.closeModal);
-};
-
 const selectTransactionType = (type: FORM_TYPES, disabled = false) => {
   if (!disabled) form.value.type = type;
 };
diff --git a/src/components/ui-tabs.vue b/src/components/ui-tabs.vue
index da7c186c..daf8437b 100644
--- a/src/components/ui-tabs.vue
+++ b/src/components/ui-tabs.vue
@@ -63,7 +63,7 @@ defineOptions({
 const props = withDefaults(
   defineProps<{
     options: Tab[];
-    initialTab?: Tab | null;
+    initialTab?: Tab | null | undefined;
     tabsAlignment?: CSSProperties["justifyContent"];
   }>(),
   {
diff --git a/src/pages/settings/settings.vue b/src/pages/settings/settings.vue
index ac43ef7a..9f588455 100644
--- a/src/pages/settings/settings.vue
+++ b/src/pages/settings/settings.vue
@@ -1,6 +1,6 @@
 <template>
   <div class="settings-page">
-    <UiTabs :options="tabs" tabs-alignment="flex-start" />
+    <UiTabs :initial-tab="initialTab" :options="tabs" tabs-alignment="flex-start" />
 
     <router-view />
   </div>
@@ -9,13 +9,15 @@
 <script setup lang="ts">
 import { ROUTES_NAMES } from "@/routes";
 import UiTabs, { type Tab } from "@/components/ui-tabs.vue";
+import { useRoute } from "vue-router";
+
+const route = useRoute();
 
 const tabs: Tab[] = [
   {
     name: "currencies",
     label: "Currencies",
     to: { name: ROUTES_NAMES.settingsCurrencies },
-    initial: true,
   },
   {
     name: "categories",
@@ -23,6 +25,7 @@ const tabs: Tab[] = [
     to: { name: ROUTES_NAMES.settingsCategories },
   },
 ];
+const initialTab = tabs.find((i) => i.name === route.path.split("/").at(-1));
 </script>
 
 <style lang="scss" scoped>