Inferiority Complex

Children can develop an inferiority complex because of an illness, poverty or incorrect upbringing. It stunts the child’s growth and they might not reach their full potential. It can also lead to distress or wrong-doing on the part of the child.

One of the causes that can lead to this condition is degrading or humiliating treatment of the child. This can take several forms:
Scolding children when they make mistakes the first time.
To always label a child a liar if he told a lie once.
To always refer to the child as cunning, even if the child did something like that once.
Calling a child lazy when he is temporarily procrastinating.
Using unkind words for the child in front of siblings, relatives or friends. This makes the child feel worthless and he becomes envious of others and hates them.

Islam teaches that if children err, they should be cautioned politely. Explain that their actions are wrong. If they reform, the aim is achieved. If not, they may be suitably punished.

Once, in salaah, Muaawiyah bin Hakam (radhiallahu anhu) heard someone sneeze and said Yarkamukallah. People stared at him angrily as he’d spoken in Salaah. ‘What’s wrong?’ he asked, ‘Why are you staring at me?’. They started tapping their thighs to tell him to be quiet. After the Prophet (sallallahu alaihi wa sallam) completed Salaah, he called him. Muaawiyah said: ‘I did not see a teacher before or after him who taught better than he could. He did not scold, punish or accuse me, but simply said: ‘It is not right that we speak while offering Salaah. Salaah is meant to glorify Allah…’ [Muslim]
Bringing up Children in Islam Pg 121-123