How should I reject this guy?

I had hung out with this guy for 2 dates and he is a good guy. But I found out that he had some family issues and he dislikes his parents and not living with them. He has been independent his whole life working and paying his own tuitions. He is hard working, but he spends a lot of his money going out to eat and on his friends or entertainments. I want to tell him that he should think about himself, and tell him to save money so he could make a family someday. His longest relationship was for 5 years with his ex, but he told me his parents didnt want the girl to be with him. So if his parents treat her like that, then of course his parents was going to say the same thing to me. I am thinking of rejecting this guy. The first time he tried to hold my hands, his hands were shaking and he when holds my shoulders it started to shake too. I think he was nervous, but why? Maybe he was pretending. His parents left him for their grandparents to take care. He never saw his parents until he was 5 years old. I am not too sure if what he is saying is lying to me. He works to jobs. One was 30-40 hours and 15 hours for another. He has to pay rent and is living at his relatives house right now. He graduated from college with a bachelor's degree in psychology and a medical istant certificate. I liked his friends a lot, they were nice people to hangout with. I really liked the area where they lived, the weather was sunny everyday. He loves dog because he has his cousin's dog at home. I thought the dog was cute. He drives a toyota civic 1997, but when i first rode on his car it smells bad like sweat. His car was dirty hehe. I guess he didnt clean his car. I could not believe his car was this old and he drives it on highway and to work everyday where the place was filled with ghetto people and the area where there were gunshots. It can be quite dangerous to be driving an old car on highway. We both had suffered riding on the bart together for an hour. He lived so faraway from me like an hour. If he was to drive to see me he will have to drive on the highway filled with slow traffic and he will have to pay six bucks to cross the bridge to see me everytime. He didnt like driving to see me and told me to take bart to see him. The bart was eleven bucks for round trip. It was rather inconvienent for both of us. Although, i wished he had a bonded family instead of a broken one and wished that he didnt live so faraway from me. He still has my jacket in his car and he won me a gigantic panda stuff animal for me in the themes park we went together with his friends, which was inside his car still. I am thinking of going to see him the last time, so I can get my jacket back. I didnt care about the gigantic panda stuff animal. He even took some pictures of me with him together when we went to the themes park and posted on facebook. I told him not to put my pictures up, but he didnt listen to me. He said he just wants to be friends with me this summer, but now he said he wants me to be his girlfriend during the second date. He is kinda chubby and i think i hurt his feelings when i said that to him. He told me he was going to the gym to lose weight at 24 hour fitness. He bought a new camera, and told me he was going to take more pictures of us together for memories. I feel so bad for him now, but this is also for his own good if he ever finds a new girl in his life someday. I met this guy online, but i know dating online wasn't so good and cant be anything long-term. Again, how can i tell him to remove my pictures on his facebook? How can I smoothly tell him good-bye and not hurt him anymore? I am thinking of giving him back a hundred bucks and maybe hide it somewhere so i can tell him later, because he has been very nice to me and treated me a lot. He wants me to share drinks with him on the second date already and i didnt let him so i poured it into another cup. I thought his face was really cute and chubby. But something is making me reject him. Please give me some good feedbacks and suggestions. Thanks!