$luckycharms:
Array
(
    [hearts] => pink
    [moons] => yellow
    [stars] => orange
    [clovers] => green
    [diamonds] => blue
    [horseshoes] => purple
    [balloons] => red
)

foreach ($luckycharms as $color){
    echo "The " . key($luckycharms) . " are " . $color . ".<br>";
}

Using method #1 can give you unexpected results:
The hearts are pink.
The hearts are yellow.
The hearts are orange.
The hearts are green.
The hearts are blue.
The hearts are purple.
The hearts are red.

foreach ($luckycharms as $shape => $color){
    echo "The " . $shape . " are " . $color . ".<br>";
}

Using method #2 works much better:
The hearts are pink.
The moons are yellow.
The stars are orange.
The clovers are green.
The diamonds are blue.
The horseshoes are purple.
The balloons are red.