I think this was something they added in the movie. I was rereading the first book today, and it says that Frodo is one of Bilbo's younger cousins:
Quote:
But he had no close friends, until some of his younger cousins began to grow up.
The eldest of these, and Bilbo's favourite, was young Frodo Baggins
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If you have the newer paperback edition with the movie actors on the cover, you'll find that passage on the bottom of p.21