A: Your parents and his should be the first people you tell about your engagement. You don't want them hearing about it from another person—even if that other person is a grandparent, sibling or aunt.
If you can't tell them in person, call them. Sending an email is fine to announce your engagement to your friends, but your parents—especially if you are expecting them to help pay for the wedding—deserve a phone call.
After you tell both sets of parents, you can see, call or email anyone you are close to and share your exciting news: grandparents, siblings, aunts, uncles, cousins, close friends.