We need to be all the more so careful in today's generation, as the child's heart is predisposed to stray from our path. Also, by relating to the child as a "wise man" we will encourage him to develop his intellect and to grow with vigor in the Torah way of life. Similarly, if we praise someone as a charitable person, this will encourage him to make charitable contributions which otherwise may have been beyond him; the praise strengthens his ingrained tendency to give, allowing him to overcome countertendencies of miserliness.
The father and teacher should identify one of the child's positive traits, praise him for it and encourage him to further develop it, stressing the child's ability to reach great Torah heights. "If you decide to work at it, you will succeed," they should tell him.
The father and teacher, should, however, take care not to lavish excessive praise, lest the child turn overly self-confident and arrogant.