CONFUDDLED!!!

I have no idea how to even write this, let alone handle this situation! OK, so there is this guy that apparently likes me. I know, you would think that's not a problem, right? But, no... it is. He likes me, but I don't like him like that. And, I feel really awkward.
He asked me on a date on Friday afternoon, for that night. He said that his friends were going to go and get sushi and then bowling, and he wanted to know if I wanted to go with him. I told him that I may have plans with some other friends, but that I would let him know. But, I'll be honest, I didn't really want to go, because I felt totally awkward. So, I texted him and told him that I wouldn't be able to go, but that we should do something another time. (That was the polite thing to do, right?) Well, he then decided to ask me out for Saturday night (tonight). He asked me to go to a movie, that I have been REALLY wanting to see, so I said yes.
Well, we went to the movie. And, let me tell you, it was HORRIBLE! I was thinking it was going to be scary. No, it straight up showed a girl getting raped, people getting their heads smashed in with hammers, people's hand's getting gnarled up by garbage disposals, and people's head's being blown up in microwaves. Seriously, not my kind of movie.
When we got back to my apartment, he walked me up to my door. He then told me that his friends were going to be playing some board games at 10:30, and asked me if I wanted to go. I felt really bad, but I said no. I don't want to lead him on, which is why I said no. I went to give him a "one-armed" hug, before walking in the apartment, and he did a "two-armed", wrap around hug! I didn't know what to do... kind of awkward. Later, I texted him and told him that I had fun and thank you. He said that he had fun, and that NEXT TIME he wants to take me to a real scary movie.
Errggghhhh... now, what I am confuddled about! How do I let him down gently, without breaking his heart? He is one of my FHE kids, and in my ward, so I am obviously going to have to see him for the rest of the semester. I would hate to have to flat out tell him that I'm not interested. WHAT SHOULD I DO???