What is a white lie?

Is it ever OK to make up a story and lie about something to make yourself look better or to impress someone? If the story make the other person very happy and then later they found out months later it was just made up how would you feel?

I was told I was getting a new saddle for my horse and when the person who bought it got mad at me they told me they took it back and I was not going to get it for my birthday after all. I did some research and found out that this person never got it. Would you consider this a white lie?
Give me some idea of what you would call a white lie and please do share lies you have told in order to compare.