Newborns—the joys are limitless. Tiny fingers. Toothless smiles. The intoxicating new baby smell. But first-time and veteran parents alike know that limitless anxieties come along with having a new baby, too. One particular worry that looms large for today’s parents is the cost of college.

Annual tuition, room, and board today can cost anywhere between $25,000 to upwards of $59,000 at a four-year institution.¹ Who knows what it will be 18 years from now? And with student debt in America totaling upwards of $1.77 trillion,² how could new parents not be nervous?

The best way to save for your child’s college education? Start early.

Invest Early, Invest Often

Parents of newborns and young children have one huge advantage when it comes to contributing to a 529 plan: time. This is the most valuable asset when it comes to long-term investments. By investing in your child’s education when they’re still young, you have a large window of opportunity to capitalize on potential compound interest. Even investing a modest sum may set your child up for success (after all, you have bibs and pacifiers and diapers—so many diapers!—to buy).

For example, investing $200 per month from the time a child is born until the day they turn 18 could grow to nearly $78,000, assuming a 6% rate of return. By contrast, investing $400 a month from ages 10 to 18 would have only amassed about $49,000 (also assuming a 6% rate of return). Investment returns are not guaranteed, and you could lose money by investing in a 529 plan.

Use It or Lose It?

There are other options for any money that may linger in a 529 after a child’s graduation.

Account holders have the option of using up to $10,000 to pay off qualified student loans. This $10,000 repayment option is a lifetime limit for the beneficiary and each of the beneficiary’s siblings to use toward qualifying student loans.

Account owners and beneficiaries can also roll over funds into a beneficiary-owned Roth IRA. The following conditions must be met for penalty-free rollovers: the 529 account must have been opened for at least 15 years; the amount rolled over must have been in the account for at least the last five years; and rollovers have a lifetime limit of up to $35,000, as well as being subject to annual IRA contribution limits.

Funds also may be rolled over, without tax consequences, to relatives of the beneficiary that include but are not limited to: siblings, children, in-laws, spouses, and first cousins. The IRS says you can even make yourself the beneficiary.

529 plans never “expire” either. There’s no limit on the number of times the beneficiary can be changed over the lifetime of the account. If there’s no one in your family you would like to transfer the account to after your child’s graduation, you can transfer ownership of the account to your child so they can use it for their own children or grandchildren one day.

529 plans can be advantageous to anyone seeking to pay for education, whether it be for yourself, child, or grandchild. However, their potential is greatest when they are established early in the beneficiary’s life so there’s ample time for the power of compounding to potentially grow the investment.