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This is a very small but meaningful ‘Subhashit’. It reads like this: -
सुशीलो मातृपुण्येन पितृपुण्येन् बुद्धिमानं !
यशस्वी वंशपुण्येन आत्मपुण्येन् भाग्यवानं !

Punya is good or holy deeds. We believe that the fruit of your good deeds goes to the credit of your account. In English also, we say ‘Be Good, Do Good!
The theory of karma which is more or less universally accepted refers to the same principle.
The literal meaning: -
सुशीलो मातृपुण्येन् You get good character thanks to the Punya of your mother.
पितृपुण्येन बुद्धिमान् You usually inherit intelligence from your father’s Punya.
यशस्वी वंशपुण्येन् ‘Vansh’ is the ‘dynasty’ i.e. your forefath