diff --git a/src/ui/routes/SettingsRoute.tsx b/src/ui/routes/SettingsRoute.tsx
index cb3becf..83928a6 100644
--- a/src/ui/routes/SettingsRoute.tsx
+++ b/src/ui/routes/SettingsRoute.tsx
@@ -1,4 +1,5 @@
 import { CurrencySection } from "./settings/CurrencySection.tsx";
+import { BudgetFoldersSection } from "./settings/BudgetFoldersSection.tsx";
 import { PostsSection } from "./settings/PostsSection.tsx";
 import { RecurringSection } from "./settings/RecurringSection.tsx";
 import { DataSection } from "./settings/DataSection.tsx";
@@ -21,6 +22,7 @@ export function SettingsRoute() {
     <div className="space-y-5">
       <h1 className="text-2xl">Settings</h1>
       <CurrencySection />
+      <BudgetFoldersSection />
       <PostsSection />
       <RecurringSection />
       <DataSection />
diff --git a/src/ui/routes/settings/BudgetFoldersSection.test.tsx b/src/ui/routes/settings/BudgetFoldersSection.test.tsx
new file mode 100644
index 0000000..b68aae2
--- /dev/null
+++ b/src/ui/routes/settings/BudgetFoldersSection.test.tsx
@@ -0,0 +1,69 @@
+import { expect, test } from "bun:test";
+import { GlobalRegistrator } from "@happy-dom/global-registrator";
+if (!GlobalRegistrator.isRegistered) GlobalRegistrator.register();
+(globalThis as { IS_REACT_ACT_ENVIRONMENT?: boolean }).IS_REACT_ACT_ENVIRONMENT = true;
+import { act } from "react";
+import { createRoot } from "react-dom/client";
+import { createSeedDataset } from "../../../domain/seed.ts";
+import { store } from "../../../store/index.ts";
+import { addBudgetFolder, addRecurringCost } from "../../../store/actions.ts";
+import { BudgetFoldersSection } from "./BudgetFoldersSection.tsx";
+
+async function setup(run: (container: HTMLDivElement, data: ReturnType<typeof createSeedDataset>) => Promise<void>, fail = false) {
+  let data = createSeedDataset("2026-09");
+  const housing = addBudgetFolder(data, "Housing", null);
+  addBudgetFolder(data, "Utilities", housing.id);
+  addRecurringCost(data, { name: "Phone", folderId: null, archived: false, amount: { amount: 30, currency: "USD" }, startDate: "2026-09", recurrence: { kind: "everyNMonths", n: 1 }, anchoring: "calendar", splitMode: "percent", splits: [{ postId: data.posts[0]!.id, value: 100, absorbsRemainder: true }] });
+  data.fxRates = [];
+  const original = { get: store.get, subscribe: store.subscribe, mutate: store.mutate };
+  const listeners = new Set<() => void>();
+  store.get = () => data;
+  store.subscribe = fn => { listeners.add(fn); return () => listeners.delete(fn); };
+  store.mutate = async change => { if (fail) throw new Error("Disk full"); const draft = structuredClone(data); change(draft); data = draft; listeners.forEach(fn => fn()); };
+  const container = document.createElement("div"); document.body.append(container);
+  const root = createRoot(container);
+  try { act(() => root.render(<BudgetFoldersSection />)); await run(container, data); }
+  finally { act(() => root.unmount()); container.remove(); Object.assign(store, original); }
+}
+function select(container: HTMLDivElement, label: string, value: string) {
+  const field = container.querySelector(`select[aria-label="${label}"]`) as HTMLSelectElement;
+  field.value = value; field.dispatchEvent(new Event("change", { bubbles: true }));
+}
+function input(container: HTMLDivElement, label: string, value: string) {
+  const field = container.querySelector(`input[aria-label="${label}"]`) as HTMLInputElement;
+  Object.getOwnPropertyDescriptor(HTMLInputElement.prototype, "value")!.set!.call(field, value);
+  field.dispatchEvent(new InputEvent("input", { bubbles: true }));
+}
+test("nested folder can be created and renamed", async () => setup(async (container, data) => {
+  const housing = data.folders[0]!;
+  const parent = container.querySelector('select[aria-label="Folder for Housing"]')!;
+  expect(parent.querySelector(`option[value="${housing.id}"]`)).toBeNull();
+  expect(parent.querySelector(`option[value="${data.folders[1]!.id}"]`)).toBeNull();
+  act(() => { input(container, "New folder name", "Services"); select(container, "New folder parent", housing.id); });
+  await act(async () => { Array.from(container.querySelectorAll("button")).find(b => b.textContent === "Add folder")!.click(); });
+  const services = store.get().folders.find(f => f.name === "Services")!;
+  expect(services.parentId).toBe(housing.id);
+  await act(async () => { input(container, "Name for Services", "Household"); });
+  expect(store.get().folders.find(f => f.id === services.id)!.name).toBe("Household");
+  await act(async () => { select(container, "Folder for Utilities", ""); });
+  expect(store.get().folders[1]!.parentId).toBeNull();
+}));
+test("post and bill move independently", async () => setup(async (container, data) => {
+  const housing = data.folders[0]!, utilities = data.folders[1]!;
+  const post = data.posts[0]!, bill = data.recurring[0]!;
+  await act(async () => { select(container, `Folder for ${post.name}`, housing.id); });
+  await act(async () => { select(container, "Folder for Phone", utilities.id); });
+  expect(store.get().posts[0]!.folderId).toBe(housing.id);
+  expect(store.get().recurring[0]!.folderId).toBe(utilities.id);
+  expect(store.get().recurring[0]!.splits).toEqual(bill.splits);
+  await act(async () => { (container.querySelector(`button[aria-label="Move ${post.name} up"]`) as HTMLButtonElement).click(); });
+  expect(store.get().posts[0]!.order).toBe(0);
+  const rows = Array.from(container.querySelectorAll("[data-budget-item]"));
+  expect(rows.findIndex(row => row.getAttribute("data-budget-item") === post.id)).toBeLessThan(rows.findIndex(row => row.getAttribute("data-budget-item") === utilities.id));
+}));
+test("failed move reports error", async () => setup(async (container, data) => {
+  const before = JSON.stringify(data);
+  await act(async () => { select(container, `Folder for ${data.posts[0]!.name}`, data.folders[0]!.id); });
+  expect(container.querySelector('[role="alert"]')?.textContent).toContain("Disk full");
+  expect(JSON.stringify(store.get())).toBe(before);
+}, true));
diff --git a/src/ui/routes/settings/BudgetFoldersSection.tsx b/src/ui/routes/settings/BudgetFoldersSection.tsx
new file mode 100644
index 0000000..90aef2f
--- /dev/null
+++ b/src/ui/routes/settings/BudgetFoldersSection.tsx
@@ -0,0 +1,81 @@
+import { useState, type ReactNode } from "react";
+import { Button } from "@/components/ui/button";
+import { Input } from "@/components/ui/input";
+import { NativeSelect } from "@/components/ui/native-select";
+import { Section } from "../../components/Section.tsx";
+import { useDataset } from "../../hooks/useDataset.ts";
+import { useMutate } from "../../hooks/useMutate.ts";
+import { addBudgetFolder, budgetSiblings, placeBudgetItem, renameBudgetFolder, type BudgetItemKey } from "../../../store/actions.ts";
+
+export function BudgetFoldersSection() {
+  const dataset = useDataset();
+  const { mutate, error } = useMutate();
+  const [name, setName] = useState("");
+  const [parent, setParent] = useState<string | null>(null);
+
+  function folderPath(id: string): string {
+    const folder = dataset.folders.find(folder => folder.id === id)!;
+    return folder.parentId === null ? folder.name : `${folderPath(folder.parentId)} / ${folder.name}`;
+  }
+  const folders = [...dataset.folders].sort((a, b) => folderPath(a.id).localeCompare(folderPath(b.id)));
+  function allowedDestination(key: BudgetItemKey, id: string): boolean {
+    if (key.kind !== "folder") return true;
+    let cursor: string | null = id;
+    while (cursor !== null) {
+      if (cursor === key.id) return false;
+      cursor = dataset.folders.find(folder => folder.id === cursor)!.parentId;
+    }
+    return true;
+  }
+  function children(parentId: string | null): ReactNode {
+    const siblings = budgetSiblings(dataset, parentId);
+    return <ul className="space-y-2">{siblings.map((key, index) => {
+      const item = key.kind === "folder" ? dataset.folders.find(item => item.id === key.id)! : key.kind === "post" ? dataset.posts.find(item => item.id === key.id)! : dataset.recurring.find(item => item.id === key.id)!;
+      return <li key={`${key.kind}-${key.id}`}>
+        <div data-budget-item={key.id} className="flex flex-wrap items-center gap-2 border-b border-budget-rule py-2">
+          <div className="min-w-0 flex-1 basis-40">
+            {key.kind === "folder" ? <Input className="h-8 w-full max-w-64" aria-label={`Name for ${item.name}`} value={item.name} onInput={event => {
+              const name = event.currentTarget.value;
+              if (name.trim()) void mutate(draft => renameBudgetFolder(draft, key.id, name));
+            }} /> : <span className="break-words text-sm">{item.name}</span>}
+            <span className="mt-1 block text-xs text-budget-ink-muted">{key.kind === "folder" ? "Folder" : key.kind === "post" ? "Post" : "Bill"}</span>
+          </div>
+          <NativeSelect className="h-8 w-full sm:w-56 text-xs md:text-xs" aria-label={`Folder for ${item.name}`} value={parentId ?? ""} onChange={event => {
+            const destination = event.target.value || null;
+            void mutate(draft => placeBudgetItem(draft, key, destination, budgetSiblings(draft, destination).filter(sibling => !(sibling.kind === key.kind && sibling.id === key.id)).length));
+          }}>
+            <option value="">Unfiled</option>
+            {folders.filter(folder => allowedDestination(key, folder.id)).map(folder => <option key={folder.id} value={folder.id}>{folderPath(folder.id)}</option>)}
+          </NativeSelect>
+          <div className="flex gap-1">
+            <Button size="xs" variant="ghost" aria-label={`Move ${item.name} up`} disabled={index === 0} onClick={() => void mutate(draft => {
+              const position = budgetSiblings(draft, parentId).findIndex(sibling => sibling.kind === key.kind && sibling.id === key.id);
+              placeBudgetItem(draft, key, parentId, position - 1);
+            })}>up</Button>
+            <Button size="xs" variant="ghost" aria-label={`Move ${item.name} down`} disabled={index === siblings.length - 1} onClick={() => void mutate(draft => {
+              const position = budgetSiblings(draft, parentId).findIndex(sibling => sibling.kind === key.kind && sibling.id === key.id);
+              placeBudgetItem(draft, key, parentId, position + 1);
+            })}>down</Button>
+          </div>
+        </div>
+        {key.kind === "folder" && <div className="ml-3 border-l border-budget-rule pl-3 sm:ml-5 sm:pl-5">{children(key.id)}</div>}
+      </li>;
+    })}</ul>;
+  }
+
+  return <div id="budget-folders" className="scroll-mt-5"><Section title="Budget folders" hint="Organize folders, posts, and bills together. Moving a bill keeps its destination posts and all payment history.">
+    {error && <p role="alert" className="mb-3 text-sm text-destructive">Could not save: {error}</p>}
+    <h3 className="text-sm font-medium">Top level · Unfiled</h3>
+    {children(null)}
+    <div className="mt-5 flex flex-wrap items-end gap-2 border-t border-budget-rule pt-5">
+      <label className="text-xs">Folder name<Input className="mt-1 w-48" aria-label="New folder name" value={name} onInput={event => setName(event.currentTarget.value)} /></label>
+      <label className="text-xs">Parent folder<NativeSelect className="mt-1 w-56" aria-label="New folder parent" value={parent ?? ""} onChange={event => setParent(event.target.value || null)}>
+        <option value="">Unfiled</option>{folders.map(folder => <option key={folder.id} value={folder.id}>{folderPath(folder.id)}</option>)}
+      </NativeSelect></label>
+      <Button variant="outline" disabled={!name.trim()} onClick={() => {
+        const newName = name.trim(), destination = parent;
+        void mutate(draft => { addBudgetFolder(draft, newName, destination); }).then(saved => { if (saved) setName(""); });
+      }}>Add folder</Button>
+    </div>
+  </Section></div>;
+}
diff --git a/src/ui/routes/settings/PostsSection.tsx b/src/ui/routes/settings/PostsSection.tsx
index 4b94af3..f6819b0 100644
--- a/src/ui/routes/settings/PostsSection.tsx
+++ b/src/ui/routes/settings/PostsSection.tsx
@@ -4,7 +4,7 @@ import { Input } from "@/components/ui/input";
 import { NativeSelect } from "@/components/ui/native-select";
 import { useDataset } from "../../hooks/useDataset.ts";
 import { useMutate } from "../../hooks/useMutate.ts";
-import { addPost, movePost, setPostArchived, updatePost } from "../../../store/actions.ts";
+import { addPost, setPostArchived, updatePost } from "../../../store/actions.ts";
 import type { Currency, Post } from "../../../domain/types.ts";
 import { ruleAt } from "../../../domain/allocation.ts";
 import { currentMonth } from "../../../store/index.ts";
@@ -40,6 +40,7 @@ export function PostsSection() {
       title="Posts"
       hint="A post's allocation is a dated series: each rule applies from its own month onward until the next one takes over, so changing it never rewrites what earlier months got. Click a rule to see and edit that history. A single month can still override its own allocation from the month view, and percentages may total more than 100%."
     >
+      <p className="mb-3 text-xs"><a className="underline underline-offset-2" href="#budget-folders">Move and reorder posts in Budget folders</a></p>
       {error && <p role="alert" className="mb-3 text-sm text-destructive">Could not save: {error}</p>}
       <div className="overflow-x-auto">
       <table className="w-full min-w-[36rem] text-sm">
@@ -52,7 +53,7 @@ export function PostsSection() {
           </tr>
         </thead>
         <tbody>
-          {ordered.map((post, index) => (
+          {ordered.map((post) => (
             <Fragment key={post.id}>
               <tr className={`border-b last:border-0 ${post.archived ? "opacity-50" : ""}`}>
                 <td className="py-2">
@@ -102,18 +103,7 @@ export function PostsSection() {
                   </Button>
                 </td>
                 <td className="py-2">
-                  {/* Three inline-flex siblings with nothing between them: the
-                      hover backgrounds touched, so the row read as one wide
-                      slab rather than three actions. */}
                   <div className="flex items-center justify-end gap-1">
-                    <Button size="xs" variant="ghost" disabled={index === 0}
-                      onClick={() => mutate((draft) => movePost(draft, post.id, -1))}>
-                      up
-                    </Button>
-                    <Button size="xs" variant="ghost" disabled={index === ordered.length - 1}
-                      onClick={() => mutate((draft) => movePost(draft, post.id, 1))}>
-                      down
-                    </Button>
                     <Button size="xs" variant="ghost" className="-mr-2"
                       onClick={() => mutate((draft) => setPostArchived(draft, post.id, !post.archived))}>
                       {post.archived ? "restore" : "archive"}
diff --git a/src/ui/routes/settings/RecurringSection.tsx b/src/ui/routes/settings/RecurringSection.tsx
index 8f7108a..45ea3b7 100644
--- a/src/ui/routes/settings/RecurringSection.tsx
+++ b/src/ui/routes/settings/RecurringSection.tsx
@@ -8,7 +8,6 @@ import {
   addRecurringCost,
   addRecurringCostWithPost,
   endRecurringCost,
-  moveRecurringCost,
   restoreRecurringCost,
   setRecurringCostEndedFrom,
   updateRecurringCost,
@@ -213,6 +212,7 @@ export function RecurringSection() {
       title="Recurring costs"
       hint="Bills that repeat. Each one projects forward as EXPECTED spending and is confirmed from the month view when the money actually moves — expected never touches a post's real balance. Anchoring decides where the next charge is measured from: the calendar, or the date the last one actually charged. Use the second for a bill that can charge early, like a phone plan that recharges when its data runs out."
     >
+      <p className="mb-3 text-xs"><a className="underline underline-offset-2" href="#budget-folders">Move and reorder bills in Budget folders</a></p>
       {error && <p role="alert" className="mb-3 text-sm text-destructive">Could not save: {error}</p>}
       {ordered.length === 0 ? (
         <p className="text-sm text-budget-ink-muted">
@@ -233,7 +233,7 @@ export function RecurringSection() {
               </tr>
             </thead>
             <tbody>
-              {ordered.map((cost, index) => (<Fragment key={cost.id}>
+              {ordered.map((cost) => (<Fragment key={cost.id}>
                 <tr
                   data-bill-id={cost.id}
                   className={`border-b last:border-0 ${cost.archived ? "opacity-50" : ""}`}
@@ -325,22 +325,6 @@ export function RecurringSection() {
                         setEditingId(cost.id);
                         setEditSelection({ splitMode: cost.splitMode, splits: cost.splits.map(split => ({ ...split })) });
                       }}>Edit</Button>
-                      <Button
-                        size="xs"
-                        variant="ghost"
-                        disabled={index === 0}
-                        onClick={() => mutate((draft) => moveRecurringCost(draft, cost.id, -1))}
-                      >
-                        up
-                      </Button>
-                      <Button
-                        size="xs"
-                        variant="ghost"
-                        disabled={index === ordered.length - 1}
-                        onClick={() => mutate((draft) => moveRecurringCost(draft, cost.id, 1))}
-                      >
-                        down
-                      </Button>
                       <Button
                         size="xs"
                         variant="ghost"