Who should your family talk about enrolling in a 529 plan or Cover-dell education savings account?

Your family should talk about enrolling a child (or grandchild) in a 529 plan or Coverdell Education Savings Account when they are young. The sooner you start saving, the more time your investments have to grow thanks to the power of compounding. While there's no age limit to open an account, the earlier the better.

However, the conversation should also include considerations like:

* The child's age and future educational plans: While early is good, you don't need to open an account for a newborn if you aren't sure they'll attend college or a similar post-secondary education.

* The family's financial situation: Can you afford to contribute regularly to a 529 or Coverdell? These accounts are voluntary, and it's better not to contribute if it strains the family budget.

* Understanding the differences between 529s and Coverdells: Each has different contribution limits, tax advantages, and eligibility requirements. Understanding these differences is key to choosing the best option for your family.

* The potential for financial aid: While 529 assets are considered parental assets in the financial aid calculation (and thus can slightly reduce eligibility for some need-based aid), the impact is typically minimal compared to the benefit of having the savings for college expenses.

In short, the ideal time for the conversation is as soon as a child is born or is expected, but it's a discussion that should continue as the child grows and the family's financial circumstances change.