Suppose there are two periods, no discounting of future util- ity, no interest on savings, and overall utility function. u(C, C) = v(c) + v(c) where is strictly increasing, strictly concave, and differentiable. In period 1, the consumer is given a wealth of W, from which they can spend on period 1 consumption, or save for period 2 consumption. In the second period, the consumer faces a loss L