As part of an overall savings programme of £70m, money spent on youth services will be reduced by £1.4m, leaving £1.1m to be spent annually over the next three years.
From April 2014 the council will also cease to directly deliver youth services.
The plans were drawn up following consultation with 2,000 residents, including 1,400 young people.
Councillor Liz Eyre, cabinet member for children and young people's social care, said: "This decision will see the council continuing to provide around £1m annual investment in positive activities and importantly young people having an active role alongside county councillors in deciding what activities are provided in their local area.
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