IMPACT OF COVID-19 PANDEMIC ON THE FINANCIAL

The spread of Covid-19 in Indonesia has caused disruption in all sectors, including the economic sector. One of the economic sectors currently in the spotlight is the declining per capita income, while consumption must continue to run to meet daily life. The study aims to identify the financial behavior of Muhammadiyah people in Medan before and after the Covid-19 pandemic, especially in the aspects of consumption, cash flow management, saving, investment, and credit management. In addition, it measures whether there are differences in the financial behavior of Muhammadiyah people in Medan before and after the covid-19 pandemic, so that it can be a reference for what form of financial behavior should be. The impact of the Covid-19 pandemic is certainly a force majeure situation that can occur anytime and anywhere. Even though there are still many other force majeure events that can occur. It is a quantitative approach, with a statistically correlated parametric test (t test), if the data is not normal, then the Wilcoxon test is carried out. Based on the results of the study, it was found that there were significant differences between the financial behavior of Muhammadiyah people in Medan before and during the Covid19 pandemic.


INTRODUCTION
The emergence of financial behavior is the impact of a person's desire to fulfill his life needs in accordance with the level of income earned, therefore the importance of financial behavior for the sustainability of one's business and one's life in meeting daily needs (Kholilah, 2013). Often, a person's failure to manage finances is not due to a person's low income, but rather the individual's ignorance of allocating income to certain posts (Sari, 2015).
The Covid-19 pandemic has a direct impact on the income of the Indonesian. As many as 84 percent of Indonesian feel a decrease in income. In fact, 3 out of 10 people claim their income has decreased by more than 50 percent compared to before this pandemic. Even so, 49 percent of Indonesians are optimistic that their income will increase again in the next six months. Soeprapto Tan, Managing Director of Ipsos Indonesia, said that due to the Covid-19 pandemic, economic growth in Indonesia in the first quarter of 2020 slowed down compared to the previous year. This is due to a decrease in domestic demand and household consumers, as well as a low investment ratio (Setiawan, 2020). From a survey conducted by RB Consulting (2020), as many as 48 percent of respondents admitted that their social life was disrupted due to the Covid-19. Indonesian people who are used to living together and the thick social interaction are trying to find a way out to keep socializing despite the physical distancing policy. The use of digital technology is the answer that makes people now start to depend on their interactions through cyberspace. Lately, many social media and sports applications involve online sports activities. Thus, creating an atmosphere as if exercising together, when in fact at home.
One's plans for vacations are certainly disrupted and even changed. Tourism is the third sector affected by the Covid-19. Automatically, there is a decrease in visitors. A Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) Vol. 5. No. 1 January 2021e-ISSN: 2621 Impact of Covid-19 ….. 302 number of hotels eliminate buffets because there are no visitors. It means that spending on raw materials for restaurants in hotels is reduced, which has an impact on the lower-class economy. Specifically, this survey does not explain the existence of an economic downturn.
Rather, it shows the changing style of consumers who rely on digital options. As many as 24 percent of respondents were forced to change their conventional shopping habits to online. Therefore, there is an increase in online shopping activity among the community (Diawanti, 2020).
DBS Bank stated that the Covid-19 pandemic had a significant effect on consumer shopping trends. Reduced activities outside the home and social interactions make consumers use their income more for savings and investments. Based on the results of a DBS Bank survey, savings and investment are the top two answers from respondents when asked what they will spend their money on in the next 3-6 months. The majority of respondents answered that they would use their money for savings as the top priority, and investment as the second priority. In the midst of a pandemic like today, consumers tend to be careful in spending their money (Malik, 2020). In addition to the two items above, Family financial management is very important because failure to manage finances will have a negative impact in the long run.

Financial Behavior
Financial behavior was recognized and developed by Professor Robert J. Shiller of Yale University in 1981. Another pioneer of financial behavior is a professor of economics and behavioral science from the University of Chicago, Richard H. Thaler. Financial behavior is a new way of thinking in understanding financial economic phenomena (Thaler, 2017). It is a relatively new field of science. The theory is ready to replace neoclassical theory as the dominant paradigm used to understand people's investing behavior in today's capitalist world. It considers psychological and sociological factors as an important foundation in making one's financial decisions. Thus, behavioral finance is the study of how psychology impacts financial decisions in households, markets and organizations (Copur, Zeynep, 2015). (Ricciardi & Simon, 2000) disclose the interdisciplinary relationships that integrate behavioral finance as follows:  Sociology. It studies a person's social behavior within the scope of individuals and groups.

It covers the basic influence of social relationships and attitudes of a person; c) Finance.
This discipline concentrates on how to create value and make decisions related to finance, capital allocation, acquisition, investment and managing financial resources with the aim of welfare; d) Behavioral finance theory is the application of psychology to the discipline of finance. An approach that explains how humans invest or deal with financial problems is influenced by psychological factors. Financial behavior is the result of psychological interactions with financial behavior and performance of all types of investor categories, and that investors should be more careful in making investments so as not to make mistakes in making decisions, and be emotionally affected, tend to be effective in using the money they have, such as making a budget, saving money and controlling spending, investing, and paying obligations on time.
In the preparation of the Indonesian financial literacy index, the Financial Services Authority (Finance, 2013) also includes observations on financial behavior. Financial behavior seen in a survey conducted by OJK includes how respondents: a) Maintain their financial condition, for example how often do they check their savings book and keep records of their household expenses and income; b) Financial management, such as how to deal with financial difficulties; c) Financial planning, for example preparing for retirement; d) Make choices according to the needs of the various types of insurance products available and how they can continue to access and obtain the required financial information. The objectives of the existence of financial behavior are as follows: a) Measure and manage finances by making a financial budget to make it more controllable; b) Measuring the effectiveness of achieving financial goals; c) Become a reference or pillar in achieving financial planning.
The following are some of the common benefits of having good financial behavior: a) Can control expenditure items to be more efficient; b) Become a learning control and feedback by making a budget for this month and the following month; c) Help to correct the mistakes made to avoid the use of financial products that are not in accordance with the needs.

Behavioral Financial Aspects
Dew & Xiao (2011) explained that there are four things that can affect a person's financial behavior, namely:

Consumption
According to Gregory (2003), consumption is expenditure by households on goods and services. A person's financial behavior can be seen from how the person carries out his consumption activities, such as what he buys and why he buys it.

Cash flow management
Cash flow is an indicator of financial health which means a person's ability to pay all the costs he has. It is balanced between cash inflows and expenses. Cash flow is measured by the timeliness of a person in paying attention to the time record of payments and making budgets and planning for the future (Hung, Angela, Andrew M Parker, 2009).

Savings and investment
Savings is the part of income that is not consumed in a certain period. someone does because someone does not know what will happen in the future, so money must be saved to pay for unexpected events (Ilfita, 2021). In other words, investing means allocating or investing resources today with the aim of getting benefits in the future (Lusardi, Annamaria, Pierre Carl Michaud, 2017).

Credit Management
Debt management is a person's ability to take advantage of debt to improve his welfare. So, debt management is more about how someone uses debt for something productive, not for consumption purposes.
In this study, the financial behavior discussed is related to financial management practices (applications in financial management). Financial behavior measured in research subjects is seen from behavior related to decisions in the use of financial products that are officially available in Indonesia.
Financial behavior in this study is defined as a person's ability to plan, manage and make decisions related to consumption and financial management (cash-flow management), savings and investment, and credit management (loans). The category of assessment that will be used to measure this behavioral aspect of finance is based on the total value obtained by the respondent.

Category Mark Information
Well 60% shows the level of Islamic financial behavior in individuals is at a good level Not good < 60% shows the level of Islamic financial behavior in individuals is at a less good level

Relevant Research
Research conducted by Hilgert, Hogart and Beverly (2009)  Previous research was also conducted by (Gunawan, Ade, 2019)  According to (Schresbegh, 2013) financial literacy increases along with increased income, it is also reinforced by the results of research conducted by (Nidar, Sulaeman Rahman, 2012) stating that the level of monthly income affects financial literacy.

Research Sites
The research was conducted in Medan which consists of 31 branches, namely:

Population and Sample
The

Analysis Method
The analysis method was carried out with a two-average difference test instrument which aims to determine whether the financial behavior of the Muhammadiyah people in Medan before the Covid-19 pandemic and after the Covid-19 pandemic there is a significant difference. The test used is a two-party test, and the use of hypothesis analysis tests is determined after knowing the results of the normality test. If the data is normally distributed, the test used is the t test (correlated parametric statistics), if the data is not normally distributed, the test is used Wilcoxon (correlated non parametric statistics).

RESULTS AND DISCUSSION
The reserachers processed data from the answers to the questionnaires distributed to the people of Percut Sei Tuan District with a total of 20 statement items related to the Financial Behavior variable. The number of respondents selected was 100 people for filling out the questionnaires related to the statements of these variables. It was based on using the Likert scale method, with the highest score of 5 indicating the answer strongly agrees and the lowest score being 1 to indicate the answer strongly disagree. Thus, this provision applies to calculating the Financial Behavior variable which will be examined. The characteristics that become the identity of the respondents in the research consist of differences in gender, age, place of residence, education, type of work, and amount of income, and the name of the respondent is not included because it is to provide convenience to the respondent in filling out the questionnaires distributed. The data of the respondents are summarized in the following Based on the data in the table above, it shows that female and male respondents have the same percentage, namely 50% or as many as 50 women and 50 men, this shows that both of them are very concerned about financial problems. The number of people aged 18-24 has a higher percentage, namely 91%, this is because young people pay more attention to financial management than people whose age is >30.
With a percentage of 73% or equivalent to 73 people with D3/S1/S2/S3 education, it is stated that people who come from universities are the majority because they understand more and get more economic concepts and financial behavior during lectures. As mentioned by (Saraswati, Rispantyo, & Kristianto, 2017) stated that learning in higher education plays an important role in the process of forming student financial literacy.
Effective and efficient learning will help students have the ability to understand, assess, and act in their financial interests. For the characteristics of the type of work, it is dominated by people who have other jobs with a percentage of 60% and private employees with 22%.
For the last characteristic, the amount of income is dominated by people who earn Rp. 3,000,000 -Rp. 4,000,000 with a percentage of 74%. This shows that people with incomes equal to the minimum wage are more careful in managing their finances.

Normality Test Results
This test aims so that this study can determine whether or not it is normally distributed between the independent variables and the dependent variable or both.
Kolmogrov Smirnov test criteria for normality test.
If the significance value is > 0.05, then the data is normally distributed.
If the significance value is < 0.05, then the data is not normally distributed (Juliandi et al., 2014, p. 55).
The following are the results of the normality test for all variable data in the study using Kolmogorov Smirnov and probability plots as follows:  Based on Figure 2, the data used is normally distributed because it can be seen that the points spread close to or follow the diagonal line.

Result of Homogeneity of Variance Test Using Levene's Test
The Levene test or Levene test for equality of variance is used to test whether the samples have the same variance. To find out whether the two samples are homogeneous or not, it is necessary to test the homogeneity of the variance first with a significant level of = 5%.
By looking at the significance probability value: a) Significance probability < 0.05, then the variance of the two groups of data is not homogeneous; b) Significance probability > 0.05, then the variance of the two groups of data is homogeneous.
The analysis of the Levene test results is carried out by determining the test hypothesis first, namely: a) H0 : The variance of the two populations is homogeneous; b) H1 : The variance of the two populations is not homogeneous.
The following are the results of the homogeneity test for the overall variable data using the Levene test Based on the data above, it can be seen that the value of Sig. is 0.828. This value is greater than the significance value of 0.828 > 0.05. So it can be concluded that the data used in this study came from the same or homogeneous population.

Hypothesis testing
Hypothesis testing is an analysis of collecting data that is relevant to the formulation of related problems, then processing and analyzing data to test the truth of the hypothesis (Noor, 2017 p. 24). Since the data that has been analyzed is normally distributed and homogeneous, it will then be tested using correlated parametric statistics or paired sample ttest. Paired t-test (paired t-test) is one method of testing the hypothesis that uses data that is not independent (pairs). As for what is meant by independent or paired data, the object of research is subjected to two different treatments so as to produce two kinds of samples from the first and second treatments or in other words the data in the second sample is a change from the first sample data (Effendi & Wardhani, 2016).
Paired t-test in this study was used to analyze the financial behavior of Muhammadiyah people in Medan before and after the Covid-19 pandemic.
Decision-making: a) If the significance value (2-tailed) < 0.05 indicates a significant difference between the initial variable and the final variable; b) If the significance value (2tailed) > 0.05 indicates that there is no significant difference between the initial variable and the final variable.
Hypothesis: Ho : during = before Ha : during > before The results of the calculation of the results of the paired difference test (paired to ttest) can be seen in the following table:

Two-Sample Kolmogorov-Smirnov Test
The test aims to examine the comparability of two independent samples on the Ho: there is no difference in financial behavior between before and during the pandemic Ha: there are differences in financial behavior between before and during the pandemic (Juliandi, 2014 p. 55) Decision making basis: Significance probability < 0.05 reject Ho Significance probability > 0.05, accept Ho The following are the results of the Kolmogorov Smirnov test for two samples:

Financial Behavior Level Analysis
Based on the results of the study that the level of financial behavior before the pandemic, the majority of respondents stated agree regarding financial behavior based on the answers to the questionnaire, meaning that before the pandemic Muhammadiyah people in Medan managed their finances well and realized that it was very important to manage their finances personally, as an effort to control the future financial problems. Then during the pandemic, there was a decrease in the agree and strongly agree percentages, then the percentage increase in disagree answers when compared to financial behavior data before the Covid-19 pandemic.

Analysis of Differences in Financial Behavior of Muhammadiyah People in Medan
Before As for the research carried out, (Cholilawati & Suliyanthini, 2021) also stated that during the Covid-19 pandemic, the consumer community experienced changes in behavior, especially in seeking information related to goods/services, purchasing goods/services, and how they used goods/services. These activities are reduced or rarely carried out during the Covid-19 pandemic, but the activities of disposing of products that have been consumed are mostly carried out during the pandemic. Even before the pandemic, people did this. Other research (Panjaitan, Lubis, & Kusuma, 2014), there is a significant difference between the price of oranges, the price of cabbage, the price of potatoes, the price of tomatoes, the price of carrots, the price of beans, the price of Chinese cabbage, the price of chayote, the price of cauliflower, the price of red chili before and after the eruption of Mount Sinabung.
It can be seen from the results of the percentage of education 73% or equivalent to 73 people with D3/S1/S2/S3 education stating that people coming from universities are the majority because they understand more and get more economic concepts and financial behavior during lectures.
Good financial behavior is obtained through financial decisions made appropriately in order to appreciate the value of money. Thus, it is important to have good financial literacy in order to organize a better future. This is continuous with financial education that has the ability to understand, assess and even act in the interests of financial behavior, because if financial learning in higher education is improved, students' financial behavior will be even better.
Financial education has a very important role for students to have the ability to understand, assess, and act in their financial interests. Learning in college provides students with lessons that are used as milestones in guiding the way to overcome the financial problems they face (Erawati & Susanti, 2016).
It can be concluded that universities are very influential on people's financial behavior which is in line with and supported by the results of research conducted (Nasihah & Listiadi, 2019) which states that "learning in higher education has a positive and significant influence on financial behavior".
Learning has a significant effect on the financial behavior variable. The higher the students' understanding of the learning provided by the lecturers at the university, the better the students financial behavior will be (Arisal, Agustang, & Syukur, 2020). From the results of the research and discussion conducted, it is necessary to strengthen the understanding of financial management for Muhammadiyah people, in order to minimize the economic condition of the household, which is currently experiencing income fluctuations.

CONCLUSION
Based on the results of the study that the level of financial behavior before the pandemic, the majority of respondents agreed regarding financial behavior based on the answers to the questionnaire, meaning that before the pandemic, Muhammadiyah people in Medan managed their finances well and realized that it was very important to manage their finances personally, as an effort to control financial problems that arise will experience in the future. Then during the pandemic, there was a decrease in the agree and strongly agree percentages, then the percentage increase in disagree and disagree answers when compared to financial behavior data before the Covid-19 pandemic. It shows that people experience changes in financial behavior in managing finances during a pandemic due to declining income so that people adjust financial patterns according to circumstances. And based on the results of the study, it was found that there was a significant difference between the financial behavior of Muhammadiyah people in Medan before and during the Covid-19 pandemic.