The purpose of the spelling lists in the Foundations lessons is to guide students in applying the phonograms and spelling rules in the context of words, in order to build fluency in using them for reading and spelling. They are teaching students how to read and spell.
Each word on the list should be taught to the students using the steps listed on the Spelling Analysis Card and modeled in the lessons. (The extra words in the colored rows are optional.)
Practicing applying phonograms and spelling rules and analyzing how they are working in words, with guidance and support from you, is a powerful tool in helping children to develop reading fluency. It also lays the groundwork for future spelling mastery by deepening their understanding of how written English works. These lists are not a spelling test or a list of words students should memorize.
For tips on the whats, whys, and hows of the Foundations spelling lists, see our article: The purpose of Foundations spelling lists.