The household relationship data show the changing composition of families and households. Relationship data are used, in part, to determine how money is spent in federally funded nutrition and education programs, such as the Special Supplemental Food Program for Women, Infants, and Children, and by the Social Security Administration to handle a number of planning issues under the Old Age, Survivors, and Disability Insurance and the Supplemental Security Income Programs.

In addition, the relationship item is a key variable in implementing the poverty definition, which is based on income thresholds that vary by size of family and number of children. Numbers and percentages of people in poverty are used in allocating funds by many federal programs, such as Title I, which funds assistance for educationally disadvantaged students, and the HOME Investment Partnerships Program.

Also, information derived from the relationship item helps to identify areas which have experienced changes in the number of children, elderly parents living with the householder, and single-parent households, so that government agencies can develop and evaluate programs to help these populations. Policymakers can use the data to inform their decisions on issues such as single parenting or cohabitation. Businesses can use the data to find potential new markets, or change what they are selling in a present market to reflect changes in family structure and associated consumer habits.

Source: U.S. Census Bureau