diff --git a/app/models/budget.rb b/app/models/budget.rb
index 6d6a8f02f..057c97479 100644
--- a/app/models/budget.rb
+++ b/app/models/budget.rb
@@ -121,11 +121,14 @@ class Budget < ApplicationRecord
     categories_to_remove = existing_budget_category_ids - current_category_ids
 
     # Create missing categories
+    inherited_rollover = inherited_rollover_flags(categories_to_add)
+
     categories_to_add.each do |category_id|
       budget_categories.create!(
         category: current_categories_by_id.fetch(category_id),
         budgeted_spending: 0,
-        currency: family.currency
+        currency: family.currency,
+        rollover_enabled: inherited_rollover.fetch(category_id, false)
       )
     end
 
@@ -133,6 +136,23 @@ class Budget < ApplicationRecord
     budget_categories.where(category_id: categories_to_remove).destroy_all if categories_to_remove.any?
   end
 
+  # Rollover is a standing choice about an envelope, not about one month: a
+  # user who switches it on for Vacations expects it to keep going, and a
+  # month bootstrapped with the flag off would silently break the chain. New
+  # rows therefore inherit it from the last initialized budget of the same
+  # owner -- the same chain the carry itself walks. Turning it off on a given
+  # month still overrides it from there on.
+  def inherited_rollover_flags(category_ids)
+    return {} if category_ids.empty?
+
+    source = most_recent_initialized_budget
+    return {} unless source
+
+    source.budget_categories
+      .where(category_id: category_ids, rollover_enabled: true)
+      .each_with_object({}) { |bc, flags| flags[bc.category_id] = true }
+  end
+
   def uncategorized_budget_category
     budget_categories.uncategorized.tap do |bc|
       bc.budgeted_spending = [ available_to_allocate, 0 ].max
diff --git a/config/locales/views/budgets/en.yml b/config/locales/views/budgets/en.yml
index 2200e08ae..da77e6f9a 100644
--- a/config/locales/views/budgets/en.yml
+++ b/config/locales/views/budgets/en.yml
@@ -76,8 +76,8 @@ en:
       rolled_over: "+%{amount} rolled over"
     budget_category_form:
       monthly_average: "%{amount}/m avg"
-      rollover_label: Roll over
-      rollover_title: Bring this category's unspent amount from last month into this one
+      rollover_label: Rollover
+      rollover_title: Keep this category's unspent money from one month to the next
       shared_placeholder: Shared
       shared_title: Leave empty to share parent's budget
     confirm_button:
diff --git a/config/locales/views/budgets/fr.yml b/config/locales/views/budgets/fr.yml
index 427dbe796..fc921a9c4 100644
--- a/config/locales/views/budgets/fr.yml
+++ b/config/locales/views/budgets/fr.yml
@@ -7,11 +7,11 @@ fr:
       over_set: "> 100 % réglé"
       percent_set: "%{percent} défini"
     budget_category:
-      rolled_over: "+%{amount} reportés"
+      rolled_over: "+%{amount} de report"
     budget_category_form:
       monthly_average: "%{amount}/mois en moyenne"
       rollover_label: Report
-      rollover_title: Reprendre sur ce mois le solde non dépensé de cette catégorie le mois dernier
+      rollover_title: Conserver d'un mois sur l'autre ce que cette catégorie n'a pas dépensé
       shared_placeholder: Partagé
       shared_title: Laisser vide pour partager le budget des parents
     confirm_button:
diff --git a/test/models/budget_category_test.rb b/test/models/budget_category_test.rb
index 9de9906b1..c6bd8f4c7 100644
--- a/test/models/budget_category_test.rb
+++ b/test/models/budget_category_test.rb
@@ -585,6 +585,57 @@ class BudgetCategoryRolloverTest < ActiveSupport::TestCase
     assert second_subcategory.budgeted?
   end
 
+  test "the carry survives a month the user merely opens" do
+    first = initialized_budget(2.months.ago)
+    allocate(first, 100)
+    spend(30, budget: first)
+
+    # The user does nothing but open the next month. Bootstrapping created
+    # its rows; without inheritance they'd default the toggle off and drop
+    # the carry on the floor.
+    second = initialized_budget(1.month.ago)
+    second_category = budget_category_for(second)
+    assert second_category.rollover_enabled?, "a new month inherits the standing rollover choice"
+
+    second_category.update!(budgeted_spending: 100)
+    recompute!
+
+    assert_equal 70, stored_rollover(second)
+  end
+
+  test "turning the toggle off overrides the inherited choice from there on" do
+    first = initialized_budget(2.months.ago)
+    allocate(first, 100)
+    spend(30, budget: first)
+
+    second = initialized_budget(1.month.ago)
+    allocate(second, 100, rollover: false)
+    recompute!
+
+    assert_equal 0, stored_rollover(second)
+
+    third = initialized_budget(0.months.ago)
+    assert_not budget_category_for(third).rollover_enabled?,
+      "the later month inherits the off state, not the older on state"
+  end
+
+  test "one member's rollover choice does not leak into another's budget" do
+    @family.update!(personal_budgets: true)
+    josh = users(:josh)
+    ann = users(:ann)
+
+    josh_first = initialized_budget(2.months.ago, user: josh)
+    josh_first.budget_categories.find_by!(category: @category).update!(budgeted_spending: 100, rollover_enabled: true)
+
+    # Categories are family-wide, budgets are not: Ann's new month must not
+    # pick up Josh's choice.
+    ann_second = initialized_budget(1.month.ago, user: ann)
+    josh_second = initialized_budget(1.month.ago, user: josh)
+
+    assert josh_second.budget_categories.find_by!(category: @category).rollover_enabled?
+    assert_not ann_second.budget_categories.find_by!(category: @category).rollover_enabled?
+  end
+
   private
     def create_account(owner:, name: "Rollover Checking")
       @family.accounts.create!(